Klp 1 the actual lease payment will be influenced by

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vice versa if few lessees and many lessors. KLP 1: The actual lease payment will be influenced by competition Copyright 2014 Health Administration Press
To compensate for the additional risk, GBF might also include a clause that: would prohibit cancellation for some period, say two years, and/or impose a cancellation penalty fee which might decline over time The decision to include a cancellation clause depends on whether the lessee or the lessor is in a better position to assume the residual value risk KLP 2: A cancellation clause would make the contract more risky for the lessor Copyright 2014 Health Administration Press
At an expected 100 procedures, the per procedure lease would cost the center $25,000 more than the conventional lease; however, the lessee would be buying volume downside protection For the lessee, a per procedure lease means less risk but also less expected return. For the lessor, it means more risk but a higher expected return KLP 3: Per procedure leases change the risk for lessors and lessees Copyright 2014 Health Administration Press

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