Modelling the financing of acquisition of mechanization in agriculture
2003
Jakovcevic, K. (Ekonomski fakultet, Subotica (Serbia and Montenegro))
The paper deals with the basic features of lease financing in acquiring equipment. The decision wheather to apply lease financing or credit financing in order to achieve the right to use the equipment is based on the money flow and the possibility of servicing outlays. The most frequent methods of analysis are reviewed on a concrete example, the method of present value of outlays in different cases of financing and the method of internal rate of return.
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