1 Running head: ACC 309 Milestone Two Management Brief ACC 309 Milestone Two Management Brief Corey Popma Southern New Hampshire University
2 ACC 309 Milestone Two Management Brief Management Brief Capital Lease Peyton Advanced has decided to lease six ovens rather than purchasing to own. Leasing poses both advantages and disadvantages. Advantages to leasing consist of: availability to use the necessary equipment, plant or property without needing to forfeit mass amounts of money that may not be readily accessible, less risk involved for the lessee (unless capital lease) and lastly, the lessee has the ability to write off the full cost of the asset. Disadvantages include: not the overall owner (unless capital lease), some leasing agreements may end up costing more than the overall value of the asset, and lastly, as the lessor, you may have to worry about the lessee making their guaranteed payments on time or at all. This is a smart move for Peyton because no debt is taken on and they are able to retain their cash flow.
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- Summer '14
- Peyton Advanced