Chapter 6 Asset Investment Decisions and Capital Rationing
Lease or Buy Decisions. 1.1. Introduction. 1.1.1 Rather than buying an asset outright, using either available cash resources or borrowed funds, a business may lease an asset. 1.1.2 Finance lease: (a) A finance lease exists when the . substance. of the lease is that the . lessee enjoys substantially all of the risks and rewards of ownership ................
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