There are some very sensible reasons for leasing assets, and some that make you think more deeply.

Question:

There are some very sensible reasons for leasing assets, and some that make you think more deeply. The following site argues mostly in favour of leasing. One of its arguments is that since lease payments are typically lower than loan payments on a purchase, the “savings” can be invested in higher yield instruments such as equity funds, and you therefore come out ahead at the end of the term. Is this a reasonable criticism of the borrow-and-buy alternative to leasing? leaseguide.com/lease03.htm

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

Step by Step Answer:

Related Book For  answer-question

Fundamentals of Corporate Finance

ISBN: 978-0071051606

8th Canadian Edition

Authors: Stephen A. Ross, Randolph W. Westerfield

Question Posted: