Abstract

A Company which is enganged in the procurement of heavy equipment, it would faced with the problem in adding the heavy equipment. This research was conducted in order to determine which one is the more profitable financial institutions for the company when the loan interest rate is having fluctuation which is can not be predicted before. This research is a descriptive by using secondary data of credit calculation examples, leasing period ,prices of equipment, economic life, residual value, tax rate and interest rate of loan. The analysis technique use two techniques: first, quantitatives analysis which is consisted of calculating a bank loan, the calculation of leasing credit, cash flow prjections,net present value and the net advantage of leasing. The result of analysis technique indicated that the alternative financing commercial bank is more profitable for company with the net present value is lower than net leasing present value and the stable if the interest. Keyword: calculating a bank loan,the calculation of leasing credit, cash flow projection, net present value and the net advantage of leasing.

Full Text
Paper version not known

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.