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Case
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Reference no. UVA-F-1363
Subject category: Finance, Accounting and Control
Authors: Bob Bruner (Darden School of Business, University of Virginia); Jessica Chan (Darden School of Business, University of Virginia)
Published by: Darden Business Publishing
Published in: 2001
Length: 11 pages
Data source: Field research
Topics: Leasing; Leverage
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Abstract

In April 1999, the CFO of Amtrak and her Treasury staff must decide on a funding alternative for purchasing new trainsets and locomotives. The new equipment will be used in a new passenger service, Acela, which is critical to Amtrak?s plan to achieve self-sufficiency. Three funding options are available: 1) debt 2) leveraged lease, and 3) funds from federal grants. The objectives of the case are to Introduce students to financial leases as a financing alternative. Explore the lease-versus-buy decision, and the conditions under which financial lease arrangements make sense. Exercise skills in the valuation of financial leases.
Location:
US
Industry:
Transportation
Other setting(s):
1999
Teaching note
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Reference no. UVA-F-1363TN
Subject category: Finance, Accounting and Control
Authors: Joyce Chan (City University of Hong Kong); Bob Bruner (Darden School of Business, University of Virginia)
Published by: Darden Business Publishing
Originally published in: 2001
Version: Version 1.5
Length: 13 pages
View full details

About

Abstract

In April 1999, the CFO of Amtrak and her Treasury staff must decide on a funding alternative for purchasing new trainsets and locomotives. The new equipment will be used in a new passenger service, Acela, which is critical to Amtrak?s plan to achieve self-sufficiency. Three funding options are available: 1) debt 2) leveraged lease, and 3) funds from federal grants. The objectives of the case are to Introduce students to financial leases as a financing alternative. Explore the lease-versus-buy decision, and the conditions under which financial lease arrangements make sense. Exercise skills in the valuation of financial leases.

Settings

Location:
US
Industry:
Transportation
Other setting(s):
1999

Related

Teaching note
-
Reference no. UVA-F-1363TN
Subject category: Finance, Accounting and Control
Authors: Joyce Chan (City University of Hong Kong); Bob Bruner (Darden School of Business, University of Virginia)
Published by: Darden Business Publishing
Originally published in: 2001
Version: Version 1.5
Length: 13 pages
View full details