Difference between revisions of "Lessee"

Revision as of 00:13, 29 October 2019

Lessee is the party leasing the property.

Lessee. The party leasing the property.

Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.

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-[[Lessee]] is the party leasing the property. lessee's analysis Involves determining whether leasing an asset is less costly than buying the asset. The lessee will compare the present value cost of leasing the asset with the present value cost of purchasing the asset (assuming the funds to purchase the asset are obtained through a loan). If the present value cost of the lease is less than the present value cost of purchasing, then the asset should be leased. The lessee can also analyze the lease using the IRR approach or the equivalent loan method.
+[[Lessee]] is the party leasing the property.
 ==Definitions==
 According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]],
-:[[Lessee]]. The party leasing the property. lessee's analysis Involves determining whether leasing an asset is less costly than buying the asset. The lessee will compare the present value cost of leasing the asset with the present value cost of purchasing the asset (assuming the funds to purchase the asset are obtained through a loan). If the present value cost of the lease is less than the present value cost of purchasing, then the asset should be leased. The lessee can also analyze the lease using the IRR approach or the equivalent loan method.
+:[[Lessee]]. The party leasing the property.
 ==Related concepts==