Evaluation by the Lessor

From the following statements, identify the steps involved in lease analysis from a lessor's perspective. Check all that apply. Determine the invoice price of the leased equipment minus any lease payments made in advance. Determine the periodic cash outflow that the lessor owes to the lessee. Check and ensure that the lessor's cost of capital is more than the rate of return on the lease. Determine periodic cash inflows from the lessee. Pele Corp. is a professional leasing company. The leasing manager has to evaluate some lease agreements under the following conditions: The company's marginal income tax rate is 30%. The company has alternative investment options of similar risk that yield 8.50%. Assuming all other factors and values are constant among these leases, from the lessor's perspective, which of the following is the best lease? A lease that has an NPV of -$81,000 A lease that has an MIRR of 5.15% A lease that has an IRR of 6.75% A lease that generates an after-tax rate of return of 5.45% Based on your understanding of lease contracts, which type of lease cash flow has the most uncertainty? Loan payments Lease payments Tax savings