Leasing - part 1
Taught by Ben Wilson · AI tutor support included
You'll learn what leases are, key terminology (lessor and lessee), and why leasing is often chosen over buying assets outright. This video introduces lease accounting basics and sets up the lease versus buy decision framework you'll use in Performance Management and Advanced Performance Management papers.
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In this lesson
- 0:00 Introduction to leasing as asset finance
- 0:41 Lease terminology and definitions
- 1:54 Lease accounting and financial statements
- 2:45 Why companies choose to lease assets
- 4:00 Lease versus buy NPV calculations
- 4:31 Discount rates and cash flow principles
About this lesson
You'll discover how leases work as debt finance, their cash flow and tax advantages, and the NPV calculation method needed to compare leasing costs against purchasing costs. Understanding this foundation is essential for tackling lease evaluation questions confidently in your exams.
Duration: 5m
Transcript
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