A Note on the Evaluation of Leveraged Leases and Other Investments

Grimlund, Richard A.; Capettini, Robert

doi:10.2307/3665026

Cited by 7 publications

(2 citation statements)

References 3 publications

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“…This is not the case as is demonstrated by Bacon and Athanasopoulos (1979, p. 94). Confusion occurs sometimes between the TSFM and the MISFM (Grimlund and Capettini, 1982).…”

Section: The Multiple Investment Sinking Fund Methods (Misfm)mentioning

confidence: 98%

“…6.1 It is a widely held view that the correct approach to the evaluation of a leveraged lease investment is the use of net present values (Bierman and Schmidt, 1984;Capettini, Grimlund and Toole, 1984;Grimlund and Capettini, 1982;Myers, Dill and Bautista, 1976;Regan, 1976). Under conditions of capital rationing it is not only important to chose projects that provide the highest net present value, but also those that provide the highest ratio of present value to initial outlay.…”

Section: A Comparison Of Methods Of Evaluationmentioning

confidence: 99%

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Leveraged Leasing: An Example of the use of Investment Appraisal Techniques.

Sherris¹

1987

JIS

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The origins of leveraged leasing are the trust arrangements used in the 1870's in the United States of America by railroad companies to finance the acquisition of rolling stock (Fritch, 1977, p. 98). A trust was established to purchase the equipment. The trustee issued trust certificates to investors who provided the funds for the equipment acquisition. The trust certificates provided for the repayment of principal and interest at specified dates. The trust then leased the equipment to the railroad company and the rental paid by the railroad company was used to repay the trust certificates as they fell due. These arrangements were in reality conditional sale agreements and not leveraged leases. Leveraged leasing as we know it today was introduced in the U.S.A in 1963 after the Comptroller of the Currency permitted national and state chartered banks to own and lease personal property (Weston, 1983, p. 271). The arrangement was used initially by railroad and airline companies to finance the acquisition of large items of capital equipment. Companies within capital intensive industries could not absorb the tax benefits of ownership whereas the banks could. Leveraged leasing meant that the banks owned the equipment and claimed depreciation and other tax deductions associated with ownership. These benefits were passed onto the railroad companies through lower rentals which reflected the value of these taxation benefits.

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“…This is not the case as is demonstrated by Bacon and Athanasopoulos (1979, p. 94). Confusion occurs sometimes between the TSFM and the MISFM (Grimlund and Capettini, 1982).…”

Section: The Multiple Investment Sinking Fund Methods (Misfm)mentioning

confidence: 98%

Section: A Comparison Of Methods Of Evaluationmentioning

confidence: 99%

Leveraged Leasing: An Example of the use of Investment Appraisal Techniques.

Sherris¹

1987

JIS

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Evaluating multiple sign change and mixed projects using the return on invested capital model

Capettini

Grimlund

Toole

1988

The British Accounting Review

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Biological Monitoring: The Employer's Dilemma

Miller

1984

Am. J. Law. Med.

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The industrial workplace contains many potential health hazards that not only can cause great harm to workers, but also can destroy the employers’ economic stability. Often these hazards are documented and dealt with, but frequently they are unknown. When health-conscious employers monitor the physical well-being of their employees in an effort to avoid the terrible personal and economic costs these hazards can produce, they may be supplying their employees with the documentation necessary to recover financially for their industrial illnesses.This Article analyzes this dilemma confronting employers. It describes the many factors employers must consider when deciding whether to institute a monitoring process that takes full advantage of technological developments in medical care. The Article suggests an approach employers may take until some of the disincentives surrounding the implementation of monitoring are removed.

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A Note on the Evaluation of Leveraged Leases and Other Investments

Cited by 7 publications

References 3 publications

Leveraged Leasing: An Example of the use of Investment Appraisal Techniques.

Leveraged Leasing: An Example of the use of Investment Appraisal Techniques.

Evaluating multiple sign change and mixed projects using the return on invested capital model

Biological Monitoring: The Employer's Dilemma

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