Decision to lease versus buy
Problem:
Give an example of the effect depreciation has on the decision to lease vs. buy? How is this related to the decision to buy vs. lease? Why?
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Would the firm's operating leverage increase or decrease if it made the changes? What about the breakeven point? Explain
Predict what type of candidate might be most attracted to an organization offering high salary and cash incentives, but expensive benefits
What are the motivations for leasing? List reasons why a company might prefer to lease rather than buy including business reasons
Problem: What are the four conditions which determine whether a lease is an operating lease or a capital lease.
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Here it would be good to include some sort of text/source definition.
Compute the annual payment for the loan (round to the nearest dollar).
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