chap021 - CHAPTER 21 LEASING SLIDES 21.1 21.2 21.3 21.4...

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CHAPTER 21 LEASING SLIDES 21.1 Key Concepts and Skills 21.2 Chapter Outline 21.3 Types of Leases 21.4 Buying versus Leasing 21.5 Operating Leases 21.6 Financial Leases 21.7 Sale and Lease-Back 21.8 Leveraged Leases 21.9 Leveraged Leases 21.10 Accounting and Leasing 21.11 Accounting and Leasing (Balance Sheet) 21.12 Capital Lease 21.13 Taxes, the IRS, and Leases 21.14 Taxes, the IRS, and Leases 21.15 The Cash Flows of Leasing 21.16 The Cash Flows of Leasing 21.17 The Cash Flows of Leasing 21.18 A Detour on Discounting and Debt Capacity with Corporate Taxes 21.19 NPV Analysis of the Lease-vs.-Buy Decision 21.20 NPV Analysis of the Lease-vs.-Buy Decision 21.21 NPV Analysis of the Lease-vs.-Buy Decision 21.22 Debt Displacement and Lease Valuation 21.23 Debt Displacement and Lease Valuation 21.24 Debt Displacement and Lease Valuation 21.25 Does Leasing Ever Pay: The Base Case 21.26 Reasons for Leasing 21.27 A Tax Arbitrage 21.28 A Tax Arbitrage 21.29 Tiger Leasing’s Breakeven Payment 21.30 Tiger Leasing’s Breakeven Payment 21.31 ClumZee Mover’s Breakeven Payment 21.32 ClumZee Mover’s Breakeven Payment 21.33 Is a Lease Possible? 21.34 Some Unanswered Questions 21.35 Quick Quiz
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A-254 CHAPTER 21 CHAPTER ORGANIZATION 21.1 Types of Leases The Basics Operating Leases Financial Leases 21.2 Accounting and Leasing 21.3 Taxes, the IRS, and Leases 21.4 The Cash Flows of Leasing 21.5 A Detour on Discounting and Debt Capacity with Corporate Taxes Present Value of Riskless Cash Flows Optimal Debt Level and Riskless Cash Flows (Advanced) 21.6 NPV Analysis of the Lease-versus-Buy Decision 21.7 Debt Displacement and Lease Valuation The Basic Concept of Debt Displacement Optimal Debt Level in the Xomox Example 21.8 Does Leasing Ever Pay: The Base Case 21.9 Reasons for Leasing Good Reasons for Leasing Bad Reasons for Leasing 21.10 Some Unanswered Questions Are the Uses of Leases and of Debt Complementary? Why Are Leases Offered by Both Manufacturers and Third-Party Lessors? Why Are Some Assets Leased More Than Others? ANNOTATED CHAPTER OUTLINE Slide 21.1 Key Concepts and Skills Slide 21.2 Chapter Outline 21.1 Types of Leases A. The Basics Slide 21.3 Types of Leases Lease – a contractual agreement between two parties: the lessee and the lessor
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CHAPTER 21 A-255 Lessee – the party that has the right to use an asset and makes period payments to the asset’s owner Lessor – owner of the asset Slide 21.4 Buying versus Leasing Leasing versus Buying: The decision involves a comparison of the alternative financing methods employed to secure the use of the asset. In both cases, the company ends up using the asset. A. Operating Leases Slide 21.5 Operating Leases Also called a service lease. 1. Payments are not high enough for the lessor to recover the full
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This note was uploaded on 12/21/2011 for the course NIKA 101 taught by Professor Temur during the Spring '11 term at Acton School of Business.

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chap021 - CHAPTER 21 LEASING SLIDES 21.1 21.2 21.3 21.4...

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