Lease or Purchase [electronic resource] : Theory and Practice /

Leasing of capital assets has become an important financing method, not only in the United States but in most West European countries as well. As a result, more and more often, practitioners and theorists are confronted with the lease-or-purchase issue. It may be rather difficult, however, to resolve this issue since there is a multitude of lease-or-purchase models that vary widely in assumed initial conditions, form, and content. In this book, I review and evaluate a number of these models, paying attention to financial leases as well as to operating leases. The models will be analyzed verbally, by means of a numerical example and utilizing uniform mathematical nota­ tion. After having discussed the theoretical achievements in this area, I investigate the reasons why preference is given to leasing in real-world situa­ tions and then look into any differences in legal provisions, income tax systems, and accounting regulations in various countries as they may affect the leasing of capital assets. Consequently, I feel that this book is a helpful instrument for both theorists and practitioners confronted with the lease-or­ purchase decision. Many people made valuable contributions toward developing this book, among others my colleagues of the Department of Business Finance of Erasmus University, Rotterdam. Besides, I am especially indebted to Pro­ fessor Dr. A. I. Diepenhorst for his advice and suggestions, to an anonymous reviewer for helpful comments, and to Mrs. M. Leutscher-Van den Berg for her patient help in preparing the various versions of the manuscript.

Bibliographic Details

Main Authors:	Herst, Arthur C. C. author., SpringerLink (Online service)
Format:	Texto biblioteca
Language:	eng
Published:	Dordrecht : Springer Netherlands, 1984
Subjects:	Finance., Business., Management science., Accounting., Bookkeeping., Finance, general., Accounting/Auditing., Business and Management, general.,
Online Access:	http://dx.doi.org/10.1007/978-94-009-5640-7
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