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can you summarize the buy versus lease scenario
There are two ways to answer this sticky lease versus buy question: financially and emotionally. Some people look at the numbers and take the cheaper option. Other people are willing to pay more for something that better suits their lifestyle. [ When it comes right down to it, some people feel that driving a new car is important, and they're willing to shoulder the extra expense to do so. Clearly, owning and operating a vehicle can be expensive. But there are ways to save money — lots of money. In fact, when you look at the average household budget, the biggest opportunity for savings is
found in auto-related costs rather than food, clothing or utility bills. For example, everyone knows the monthly payments are higher to buy or lease a new car. But many people overlook the fact that new cars also mean higher insurance and DMV fees. Over time these extra expenses add up. ]
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Asked 11/11/2011 1:33:39 PM
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can you tell me a rhyme that you use to help you remember something
Weegy: In the number-rhyme system, you create a word which sounds like each of the numbers 1 to 10. Derren Brown uses these words: 1-bun, 2-shoe, 3-tree, 4-door, 5-hive, 6-sticks, 7-heaven, 8-gate, 9-line, 10-hen. [ Say you want to remember telephone, sausage, monkey in order. You might picture a bun in the shape of a telephone with the buttons in the form of currants, then a sausage filling up an empty shoe, next monkey in a tree. You have the idea. ] (More)
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how can analyzing material help you learn it better
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Asked 11/8/2011 4:27:17 PM
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what are some other costs and benefits of the lease versus buy option relative to real estate?
Weegy: lthough the value of a business has little affect on the value of the real estate, owning real estate as a business asset offers some positive financial advantages. [ For instance, financing options are more numerous for real estate than for other capital assets. Because real estate is viewed as an investment with a virtually unlimited lifespan, it can be financed with equity, mortgage loans, or sale-leaseback financing. This last option-which is somewhat analogous to an interest-only loan with no requirement to ever repay the principal-is not available for equipment, which, in comparison, has a brief lifespan and is more subject to functional obsolescence. The best way to compare the value of owning commercial real estate to leasing it is to create a purchase versus lease model, similar to comparisons for other business investments. However, being able to either own or lease real estate makes analyzing financing alternatives more complex. With equipment, options are often limited to loans or capitalized leases, which are both debt equivalents. Therefore, comparisons are based on one factor: rate. We can also make rate comparisons for real estate mortgages and operating leases. However, the analysis is complicated by the different tax ramifications and the need to factor in real estate appreciation and lease escalations. In addition, real estate ownership carries a potential opportunity cost. Owning real estate through either equity or mortgage loan financing is likely to exclude further investment in the business, such as expansion or renovation. Further operations investment might produce greater returns than the real estate investment, thus creating an opportunity cost that accompanies real estate ownership. As a result, any comparisons made between owning and leasing should include an opportunity cost comparison as well as a rate comparison.Real estate ownership tends to absorb more cash flow than a lease since property loans generally require down ... (More)
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Asked 11/8/2011 5:27:41 PM
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