leasing

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April 18, 2018 at 11:29 am #447957
humai
Participant
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Sir if PV of leasing is expensive/greater than PV of purchasing then a project NPV will decrease through the use of
lease as opposed to purchasing an asset, so could potientially fall from positive to negative, right?
Can you please explain me how this happen?
April 18, 2018 at 3:51 pm #448004
John Moffat
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The PV of leasing is the equivalent amount payable now.
The higher the initial cost, the lower will be the NPV (of any project).
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