0
What is the advantage of computing the present value of outflows in making lease vs. buy decisions?
Wiki User
∙ 17y ago
It is the essence of the decision; In buying you are presumably having 1 large outflow now - and 1 inflow at a much later time (at disposition), and several compensating tax inflows as there are depreciation considerations that leases don't receive. In leasing you will have several small payment outflows over the same time - which will have a different tax benefit (expenses are tax benefits) - than purchasing. The value (or worth) of the purchase outflow now is clear. The value (or actual cost) of commiting resources to future outflows needs to be calculated, as does the actual value of getting some sum of money in a future period. All based on the very real aspect that time is money...interest over time earns money...money is worth less in the future, etc. (Receiving $1 today is worth a different amount than receiving $1 say in 10 years). In a purely business financial decision, the one which has the lesser cost, lease or buy, would be the one to do.
Wiki User
∙ 17y ago
Add your answer:
Earn +20 pts
What is the present tense of compute?
the present tense of 'compute' will be 'computing'
If you want to find the present value of an investment you should choose the financial function?
You can use the PV function or the NPV function. Present Value is the result of discounting future amounts to the present. Net Present Value is the present value of the cash inflows minus the present value of the cash outflows.
What code used in present day computing was developed by IBM corporation?
EBCDIC
What code is used in present day computing was developed by IBM corporation?
EBCDIC Code
How is the present better then the past?
You are in the present and can make decisions about what to do or to change. You can't change the past.
What is clientserver computing?
Client/server computing, as opposed to Peer to Peer computing, is when there is a directory server present on the network, such as Windows Server 200x, LDAP, Novell eDirectory, or an equivelant. This server acts as a central authority for computers on the network.
What happens if there is less than a quorum present?
No binding decisions can be made.
Where cloud computing is used at present?
Cloud-computing technologies can offer significant advantages over traditional systems. With resources provisioned on-demand and as-needed, enterprises can benefit from the collaborative, flexible, and cost-effective nature of cloud systems.
Advantages and disadvantages of the new education system?
Advantage। Of present। Education। System
What is main advantage of sunlight?
The most important advantage of sunlight is that there is Vitamin D present in it which protect us from lack of vitamin D and the second most advantage is that sunlight is the main Light Source.
What Have you observe for the past and present of computers?
It is my observation that our computing devices will keep getting smaller and more sophisticated. This is partly because of consumer demand, and partly because the technology used to make our computing devices work is becoming smaller and more powerful.
Explain the advantage in having an inducible enzyme system that is regulated by the presence of a substrate?
It is an advantage because when the substance is present, the genes responsible for it metabolism are turned on.
