- This topic has 0 replies, 1 voice, and was last updated 11 months ago by
.
Viewing 1 post (of 1 total)
- Posts
Good morning, I am trying to get my head around something and any clarification would be much appreciated.
Company A is being charged £140,000 (incl VAT) by Company B for some equipment.
Terms are: £2333 monthly and on the 60th month Company A makes a final payment of £2353.
There is no reference made to interest or fair value in the lease.
Company A is new to trading so the bank cannot provide an interest rate for a loan to use as a proxy. In this scenario, what would company A use to determine the effective rate of interest?
Viewing 1 post (of 1 total)
- You must be logged in to reply to this topic.