Burlington Northern Railroad Company Equipment Leasing Case SolutionPosted by markwahl barg on August 1st, 2018 Burlington Northern Railroad Company Equipment Leasing Case Solution Case SolutionThe director of equipment finance at Burlington Northern Railroad Company have to research if your utilized-lease proposal is suitable. The case stresses the significance of the lessee's tax status to the need for the lease and just how the thought of residual value affects its valuation for the lessee and lessor. To value the lease correctly, a student must find out the relevant cash flows and also the appropriate special discounts for individuals flows. Excel CalculationsDepreciation ($), Tax Benefit from Depreciation ($), Interest Expense ($), Tax Benefit from Interest ($), Principal Payment ($), Total Outflow of Cash ($) PV OF NET OUTFLOWS Lease Payments ($), Tax Benefit from Lease Payments ($), After Tax Lease ($), Purchase at Residual Value ($), Total Cash Outflow ($) PV of Net Cash Out flows Like it? Share it! More by this author |