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Finance Lease

Schweser says NI in the early years is higher for a finance lease. I would've thought the opposite since the operating lease considers the PV of payments a rent expense

anybody help here

CFO is higher under Finance lease (no rent expense)
CFF lower (Seen as purchase of asset)

so is NI lower or higher?

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Got it, thanks

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depends which side youre talking...

finance

lessor

early, ni higher




lessee

early, ni lower

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