Principles of Corporate Finance

Project Finance Project is set up as a separate company. A major proportion of equity is held by project manager or contractor, ...

Parties In Project Finance Contractor Supplier(s) Equity investors Government Project company Equity sponsor Lenders Purchaser(s ...

Risk Allocation Risk Shifted to: Contract Completion/ continuing management Sponsor Management contract/ completion gtees / work ...

u Leasing Principles of Corporate Finance Brealey and Myers Sixth Edition Chapter 25 ...

Topics Covered w What is a Lease? w Why Lease? w Operating Leases w Valuing Financial Leases w When Do Financial Leases Pay? ...

Lease Terms w Operating Leases w Financial Leases ËRental Lease ËNet lease ËDirect lease ËLeveraged lease ...

Why Lease? w Sensible Reasons for Leasing ËShort-term leases are convenient ËCancellation options are valuable ËMaintenance is p ...

Why Lease? w Dubious Reasons for Leasing ËLeasing avoids capital expenditure controls ËLeasing preserves capital ËLeases may be ...

Operating Lease Example Acme Limo has a client who will sign a lease for 7 years, with lease payments due at the start of each y ...

Operating Lease Example - cont Acme Limo has a client who will sign a lease for 7 years, with lease payments due at the start of ...

Financial Leases Example Greymore Bus Lines is considering a lease. Your operating manager wants to buy a new bus for $100,000. ...

Financial Leases Example - cont Greymore Bus Lines is considering a lease. Your operating manager wants to buy a new bus for $10 ...

Financial Leases Example - cont Greymore Bus Lines is considering a lease. Your operating manager wants to buy a new bus for $10 ...

Financial Leases Example - cont Greymore Bus Lines Balance Sheet without lease Equivalent lease balance sheet Greymore Bus Lines ...

Financial Leases Example - cont Greymore Bus Lines can borrow at 10%, thus the value of the lease should be discounted at 6.5% o ...

Financial Leases Example - cont Greymore Bus Lines can borrow at 10%, thus the value of the lease should be discounted at 6.5% o ...

Financial Leases Example - cont Greymore Bus Lines lease cash flows can also be thought of as loan equivalent cash flows. ...

Financial Leases Example - cont Greymore Bus Lines lease cash flows can also be thought of as loan equivalent cash flows. 0 1 2 ...

Financial Leases Example - cont The Greymore Bus Lines lease cash flows can also be treated as a favorable financing alternative ...

u Managing Risk Principles of Corporate Finance Brealey and Myers Sixth Edition Chapter 26 ...