Many lessors require a security deposit in the form of a cash payment or other pledged collateral.
Question:
Many lessors require a security deposit in the form of a cash payment or other pledged collateral. Suppose Lambert requires Wildcat to pay a $600,000 security deposit at the inception of the lease. If the lease payment is still $1.625 million, is it advantageous for Wildcat to lease the equipment now?
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The security deposit is a cash outflow at the beginning of the lease and a cash ...View the full answer
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Related Book For 
Fundamentals of Corporate Finance
ISBN: 978-1260153590
12th edition
Authors: Stephen M. Ross, Randolph W Westerfield, Robert R. Dockson, Bradford D Jordan
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