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Please comment on the following remark: (a) ‘Leasing is a zero sum game between the lessee...

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Question

Finance

Please comment on the following remark:

(a) ‘Leasing is a zero sum game between the lessee andlessor.’

(b) Briefly discuss the reasons for firms to lease even if NALsare negative.

Answer & Explanation Solved by verified expert
4.0 Ratings (537 Votes)
Answera Leasing refers to a contractual arrangement wherein the Lessee obtains the right to use an asset for a period of time under an obligation to pay regular rental payments to the Lessor who is the legal owner of the asset The rental payments are calculated considering the value of the leased asset and the required rate of return such that the present value of all the future rental payment is equal to the value of the leased asset Zero Sum Game refers    See Answer
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