Professional Documents
Culture Documents
From calculation we can analyze that per procedure lease will cost 25000 more as compare to
conventional annual lease. However, if lessee would be buying volume downside protection the
For example
Profit will be
$700,000-$675,000 = $25000
The net profit will be only 25,000 in this case the per procedure lease is more profitable and
Question 5
From calculation the NAL for center is -$66,408. Ownership will be more attractive than
leasing if the availability of low-cost, tax-exempt debt increases and interest rate remain same
The NAL varies between $253,186 and $116,261. For the adjustment of discount rate we will
add two interest rates 5% and 8% and we will get 13% discount rate which will applied to
$1125,000 expected residual value. It will make leasing more attractive for center than before
because the residual values is borne by the lessor and the recognition of increased residual value