Lo mio

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  • Publicado : 3 de mayo de 2011
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In reporting its rate of return on assets, as noted above, the present value of the lease payments is greater than 90% of the Fair Market Value (assuming thepurchase prices is FMV), so it would be considered a capital lease and the asset would go on the Balance Sheet. Therefore, there are no earnings over assetratio advantages to leasing, as the denominator (the net assets) is the same in both cases. The value of the truck should be included in the firm’s net assets.It is not possible to determine whether this investment is above the firm’s target 12% threshold, as there is no information about the returns generated bypurchasing (or leasing) a truck. The investment figure used to determine the rate of return on the lease of the truck should be the $38,148 NPV lease cost.In reporting its rate of return on assets, as noted above, the present value of the lease payments is greater than 90% of the Fair Market Value (assuming thepurchase prices is FMV), so it would be considered a capital lease and the asset would go on the Balance Sheet. Therefore, there are no earnings over asset ratioadvantages to leasing, as the denominator (the net assets) is the same in both cases. The value of the truck should be included in the firm’s net assets.It is not possible to determine whether this investment is above the firm’s target 12% threshold, as there is no information about the returns generated bypurchasing (or leasing) a truck. The investment figure used to determine the rate of return on the lease of the truck should be the $38,148 NPV lease cost.
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