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Category: Finance
James also informs Nick that the lease contract can include a cancellation option. The cancellation option would allow Warf Computers to cancel the lease on any anniversary date of the contract. To cancel the lease, Warf Computers would be required to give 30 days’ notice prior to the anniversary date. How would the inclusion of a cancellation opt...
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Category: Finance
In the leasing discussion, James informs Nick that the contract could include a purchase option for the equipment at the end of the lease. Hendrix Leasing offers three purchase options: a. An option to purchase the equipment at the fair market value. b. An option to purchase the equipment at a fixed price. The price will be negotiated before the l...
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Leasing [LO2] What do you suppose happens to the planes at the end of the lease period?
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Category: Finance
Reasons to Lease [LO2] Why would ALC be willing to buy planes from Boeing and then lease them to China Southern? How is this different from lending money to China Southern to buy planes?
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Lease versus Purchase [LO2] Why wouldn’t China Southern purchase the planes if they were obviously needed for the company’s operations?
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