Question: Please consider the choice many businesses face when arranging the use of large capital assets (from garbage trucks to rail cars to cargo jets). What

Please consider the choice many businesses face when arranging the use of large capital assets (from garbage trucks to rail cars to cargo jets).

  • What factors should a manager weigh in choosing between signing an operating lease to use such an asset and buying the asset with secured debt?
  • What are the outstanding characteristics of a business that will favor an operating lease or that favors secured debt (or a capital lease)?

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