Lease vs Buy OT

Question 1

How is it split?

Answer 1

Between lease` payments and cost

Question 2

How is decision decided?

Answer 2

Which one out of lease and buy is the cheapest option (e.g. smaller PV)

Question 3

If there’s a one year delay in tax? (e.g. in arrears)

Answer 3

If the first cash flow is on the 1st day of the accounting period. Then first tax effect is at time 2

Question 4

If first cash flow is on last day of the accounting period?

Answer 4

The first tax effect is at time 1 (e.g. capital allowance)