EVALUATION OF THE LEASING CONTRACTS ON ENTERPRISE LEVEL Cover Image

EVALUAREA CONTRACTELOR DE LEASING LA NIVELUL ÎNTREPRINDERII
EVALUATION OF THE LEASING CONTRACTS ON ENTERPRISE LEVEL

Author(s): Cristina Dionisie, Mihaela Diaconu
Subject(s): Economy
Published by: Editura Universităţii Vasile Goldiş
Keywords: lease/buy decision; fixed assets; net present value; cost of capital

Summary/Abstract: This paper outlines a framework for lease vs buy analysis. It also hightlines various aspects of the lease/buy decision. The decision to lease or buy needs a comparison of alternative financing arrangements for the use of an asset. We provide a format for comparing net present value of the options, taking into account the analzsis of lease and buy using loans. Net present value is a more simple criterion to use in practice than dicounting costs, directly reflecting the increasing value of the company as a result of its decision.

  • Issue Year: 21/2011
  • Issue No: 2
  • Page Range: 557-562
  • Page Count: 6
  • Language: Romanian
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