This article throws light upon the top two ways for financial evaluation of leasing. The ways are: 1. Lessee's Point of View 2. Lessor's Point of View. Financial Evaluation of Leasing: Way # 1. Lessee's Point of View: (Lease or Buy/Lease or Borrow Decisions): Once a firm has evaluated the economic viability of an asset as an investment and accepted/selected [...]
This article throws light upon the six main steps involved in computing lease rentals. 1. Determine the cost of the asset which includes the actual purchase price and expenses like freight, insurance, taxes and installation, etc. 2. Determine the cash flows to the lessor on account of ownership of the asset. These include tax advantage provided by depreciation and investment [...]
After reading this article you will learn about Hire-Purchase:- 1. Meaning of Hire Purchase 2. Features of Hire Purchase 3. Legal Position 4. Method of Computing. Meaning of Hire Purchase: Hire purchase means a transaction where goods are purchased and sold on the terms that: (i) Payment will be made in installments, (ii) The possession of the goods is given [...]