Net advantage to leasing(redirected from Net Leasing Advantage)
Net advantage to leasing
The net present value of entering into a lease financing arrangement rather than borrowing the necessary funds and buying the asset.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Net Advantage to Leasing
The difference between the cost of leasing an asset and the cost of borrowing funds to buy it, where the cost of leasing is less. When calculating whether there is a net advantage to leasing, one takes into account the present value of the funds, the cost of capital, the useful life and depreciation, and so forth.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved