Lease Evaluation Basic Mathematics Use of PVIF / PVIFA Type of Annuity Regular Annuity PV = A PVIFA (i,n) Annuity-Due (pvifa) = a + a n-1) Flat Rate Vs Effective Rate of Interest Effective Rate = 2Fn / (n+1) 2 Expeditious sanction Post sanction reporting Flexibility Financial Position / Experience of lessee Models for Evaluation Debt includes Lease Investments are funded with a mix of debt,
Lease Evaluation Basic Mathematics Use of PVIF / PVIFA Type of Annuity Regular Annuity PV = A PVIFA (i,n) Annuity-Due (pvifa) = a + a n-1) Flat Rate Vs Effective Rate of Interest Effective R…