Subject category:
Finance, Accounting and Control
Published in:
1983
Length: 49 pages
Data source: Published sources
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Abstract
An investment in a capital asset normally requires managerial decision making. Usually, an organisation either leases or purchases an operational tangible asset. If the decision is to purchase the asset, a firm usually borrows the capital from a lending institution. In this paper, the concepts of lease and financial leasing are examined, However, the managerial decision of selecting either financial leasing or borrowing is emphasised. In this regard, the Bowen-Herringer-Williamson technique is modified and the ensuing model is computer programmed. The resulting computer program, preferentially selects either of the two financing alternatives. Some of these computer aided decisions are presented as exhibits. Finally, an analysis of some of the results reveal the crucial nature of some of the model parameters.
About
Abstract
An investment in a capital asset normally requires managerial decision making. Usually, an organisation either leases or purchases an operational tangible asset. If the decision is to purchase the asset, a firm usually borrows the capital from a lending institution. In this paper, the concepts of lease and financial leasing are examined, However, the managerial decision of selecting either financial leasing or borrowing is emphasised. In this regard, the Bowen-Herringer-Williamson technique is modified and the ensuing model is computer programmed. The resulting computer program, preferentially selects either of the two financing alternatives. Some of these computer aided decisions are presented as exhibits. Finally, an analysis of some of the results reveal the crucial nature of some of the model parameters.