Director of Equipment Finance in Burlington Northern Railway Company have to decide if debt, lease proposal is acceptable. The case emphasizes the importance of the tax status of a tenant to rent and how the perception of residual value affects the assessment of both the lessee and the lessor. To evaluate the lease properly, the student must determine the appropriate cash flows and the appropriate discount for those flows.
This Darden study. "Hide
by Kenneth Eades Source: Darden School of Business 13 pages. Publication Date: September 16, 1991. Prod. #: UV0245-PDF-ENG
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