Please enable JavaScript.
Coggle requires JavaScript to display documents.
Lease vs Buy - Coggle Diagram
Lease vs Buy
Sources of financing
-
-
-
-
-
-
-
-
Preference shares with conversion option are similar to ordinary shares, future profits may be dilluted.
-
Asset specific finance
-
- Calc the NPC of the loan provided in the market
- Calc NPC of options provided by the provider
- Compare 3 and 4 (If 3<4 =Good) You are benefiting.
- Calc NPV, if -R, don't immediately discard!
- Take the difference in 5 and net off 1
-
Lessons
-
-
Assessed losses
-
If not, deductions allowed by SARS will not be enjoyed
Asset specific finance, the provider of the asset also provides you with financing.
-
-NPV = Discard, Unless its asset specific finance
-
Required
When advising, think of yourself as an advisor!
-
Consider each and every option, including each option provided by the provider.
-
-
-