a. Suppose you have put an asset on lease and you are expecting rent of Tk....

 

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a. Suppose you have put an asset on lease and you are expecting rent of Tk. 78,888 from lease in each period for next 10 years. But your bank assures you to pay you the whole amount today. If the discount rate is 9%, what is the amount to be provided by bank today? b. Mr. Eshar needs a car for his office. He has two options: buying the asset taking loan from bank or taking lease from a leasing firm. Both of the options have same payment. What are the situations under which Mr. Eshar will prefer lease over ownership? a. Suppose you have put an asset on lease and you are expecting rent of Tk. 78,888 from lease in each period for next 10 years. But your bank assures you to pay you the whole amount today. If the discount rate is 9%, what is the amount to be provided by bank today? b. Mr. Eshar needs a car for his office. He has two options: buying the asset taking loan from bank or taking lease from a leasing firm. Both of the options have same payment. What are the situations under which Mr. Eshar will prefer lease over ownership?

Answer rating: 100% (QA)

a To calculate the present value of the lease payments we can use the formula for the present value of an ordinary annuity PV Rent per period 1 1 rn r ... View the full answer