Lease Vs Purchase Paper Fin 370

Lease Versus Purchase
FIN/370

Lease Versus Purchase Paper According to "Lease Agreement" (2014), a lease is “a contract between a lessor and lessee that allows the lessee rights to the use of a property owned or managed by the lessor for a period of time. The agreement does not provide ownership rights to the lessee; however, the lessor may grant certain allowances to modify change or otherwise adapt the property to suit the needs of the lessee. During the lease period, the lessee is responsible for the condition of the property.” ("Lease Agreement", 2014). According to "Buying vs. Leasing" (2014), Advantages of Leasing Equipment are less initial expenses. The primary advantage of leasing business equipment is that it allows you to acquire assets with minimal initial expenditures. Because equipment leases rarely require a down payment, you can obtain the goods you need without significantly affecting your cash flow. ("Buying vs. Leasing", 2014). Leases are usually easier to obtain and have more flexible terms than loans for buying equipment. This can be a significant advantage if you have bad credit or need to negotiate a longer payment plan to lower your costs. ("Buying vs. Leasing", 2014). According to "Buying vs. Leasing" (2014), Leasing allows businesses to address the problem of
In this example of evaluating whether it is better to lease or purchase the interest of the money borrowed to buy assets compounds increasing the total amount paid for the assets. In the example the given in the "Additional Problems With Answer" in the final pages of Ch. 27 of Basic Finance the money compounds increasing the future value of the money which directly increasing the amount of money that must be repaid to the financial institution that it was borrowed