How to calculate the highest lease rentals that a company would accept ?
I don't understand this : PV of lease CF= PV of Purchase CF
I don't understand this : PV of lease CF= PV of Purchase CF
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Lease rentals
13y ago#1If the PV of the lease flows was less than the PV of the purchasing flows, then it would be cheaper to lease, If the PV of the lease flows was more then it would be cheaper to buy.
So the highest lease payments worth paying would be when the PV's were equal.
So the highest lease payments worth paying would be when the PV's were equal.
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