Discuss net advantage to leasing


Answer the following:

1. Suggest one  key economic factor that motivates leasing as an option in acquiring an asset. Explain the potential asymmetries that may exist where leasing may be beneficial to both the lessors and the lessee.

2. Determine one significant benefit to an organization that decides to lease an asset that conventional lease analysis evaluation reveals has a negative Net Advantage to Leasing (NAL). Provide a real-life scenario that supports your answer.

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