Some business people consider that the risk of obsolescence and inflexibility is being transferred from the lessee

Question:

Some business people consider that the risk of obsolescence and inflexibility is being transferred from the lessee to the lessor. How is the lessor induced to accept higher risk and greater inflexibility?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals Of Financial Management

ISBN: 9780273713630

13th Revised Edition

Authors: James Van Horne, John Wachowicz

See More Books

Question Posted: Dec 07, 2015 05:53 AM

See More Questions

Who bears the risk of obsolescence in a lease transaction?
Develop a brief answer for each of the following questions. 1. Is carrying value ever the same as market value? 2. What major advantage does a company that has positive free cash flow have over a...
Which depreciation method would best reflect the risk of obsolescence from rapid technological changes?
Can public works increase equilibrium wages?
Consider the one-way analysis of variance setup. a. Show that the within-groups sum of squares can be written as follows: b. Show that the between-groups sum of squares can be written as follows: c....
The following accounts are taken from the records of Jasper Inc. at January 31, 2015, its first month of operations. Required: 1. Calculate the amount of total assets. 2. Calculate the amount of...
Motor speed and fan speed are both higher in frequency than what on a belt-driven machine? What is the formula for calculating belt frequency?
Kohls Corporation operates family oriented department stores that sell moderately priced apparel and housewares. The company reported the following information (adapted) for the three years ending...
Serving at a speed of 170 km/h, a tennis player hits the ball at a height of 2.5 m and an angle below the horizontal. The service line is 11.9 m from the net, which is 0.91 m high. Find the angle ,...
1. (4) A blood pressure of 110 mm Hg is measured using a cuff over the wrist which is positioned 30 cm above heart level. According to Bernoulli's equation(given below), what is the blood pressure at...
Discuss the probable impact that a sale and leaseback arrangement will have on the following: a. Liquidity ratios b. Return on investment c. Return on equity d. The risk class of the corporation's...
In your opinion, would the following factors tend to favor borrowing or leasing as a financing alternative? Why? a. Increased corporate tax rate b. Faster accelerated depreciation c. Rising price...
A BMW of mass 2.0 103 kg is traveling at 42 m/s. It approaches a 1.0 103 kg Volkswagen going 25 m/s in the same direction and strikes it in the rear. Neither driver applies the brakes. Neglect the...
The traveling salesperson problem has a long history in operations research. A traveling salesperson must visit each of n cities exactly once, minimizing the total cost of travel and returning to the...
A limitation of using ExcelModules for some of the forecasting models described in this chapter is that the program creates a custom spreadsheet that covers a specific length of time. Thus, as actual...
The diagram shows the graph of f(x). On separate diagrams, sketch the graphs of a) y = f(4x) b) y = f(3x) c) y = f(x + 1) d) y = 2f( x). On each sketch, mark the new position of the points O, A, B...
Coca-Cola is one of the most recognizable brands in the world. It is the iconic American drink that has become a global staple. The company sells its flagship brand in more than 200 countries...
In what specific way(s) do the following prominent classical economists support and/o reject Malthus' gloomy prophecy of the future condition of human material progress: - David Ricardo (1772-1823) -...
Stefans law in physics states that a body emits radiant energy according to the formula R(T) = kT 4 , where R is the amount of energy emitted from a surface whose temperature is T (in degrees kelvin)...
The first national bank pays a 4% interest rate compound continuously. The effective annual rate paid by the bank is __________. a. 4.16% b. 4.20% c. 4.08% d. 4.12%
Assume that an average firm in the office supply business has a 6 percent after-tax profit margin, a 40 percent debt/assets ratio, a total assets turnover of 2 times, and a dividend payout ratio of...
Assume that an average firm in the office supply business has a 6 percent after-tax profit margin, a 40 percent debt/assets ratio, a total assets turnover of 2 times, and a dividend payout ratio of...
The Flint Company's sales are forecasted to increase from $1,000 in 2001 to $2,000 in 2002. Here is the December 31, 2001, balance sheet: Flint's fixed assets were used to only 50 percent of capacity...
ENG 571, Theory of Energy and Sustainability Engineering, Sp 2023 HW# 3, Due on Friday, April 28 (*two days later than stated on the syllabus) Note: Students who are tasking this course for 4 hours...
Discuss your personal experience with dynamic pricing ( airlines , hotels, Uber, event tickets, etc. ) . Also, discuss any professional experience including: What revenue - management methods does...
you to play the role of an international marketing manager from an international consulting company. Your mission is helping your selected Japanese company in Japan to marketing its product or...

Some business people consider that the risk of obsolescence and inflexibility is being transferred from the lessee

Question:

Step by Step Answer:

This argument is illogical On financial leases for ...View the full answer

Fundamentals Of Financial Management

Students also viewed these Finance questions