【正文】 2023 by The McGrawHill Companies, Inc. All rights reserved. 2132 Appendix 21A: APV Approach to Leasing APV = AllEquity Value + Financing NPV Calculations shown on the following slides will show that for the latest Clumzee Movers example (where the tax rate is 25%) APV = $ – $1, APV = –$ Which is the same value as the easier NPV analysis. McGrawHill/Irwin Copyright 169。 2023 by The McGrawHill Companies, Inc. All rights reserved. 2124 Reservations and Negotiations ? What is the highest lease payment that ClumZee Movers can pay? Set their NPV to zero and solve for $Lmax: ? Cash Flows ClumZee Movers: Leasing Instead of Buying Year 0 Years 15 Cost of truck we didn’t buy $25,000 Lost Depreciation Tax Shield 5,000 (.25) = – $1,250 AfterTax Lease Payments – $Lmax ( 1 –.25) = .75 Lmax $25,000 – 1,250 – .75 Lmax ?? ????? 5 1 m a x )( 250,1$,25$0 t tLNPV ??????? 5151m a x )( 250,1$)(,25t tt tL?????? 5151m ax)(75.)(250,1$000,25$ttttL,6$m ax ?LNo lease is possible: Lmin Lmax McGrawHill/Irwin Copyright 169。 2023 by The McGrawHill Companies, Inc. All rights reserved. 2116 NPV Analysis of the Decision $)(825,5$000,25$ 51???? ??t tNPV $)(825,5$000,25$ 51???? ??t tNPVNPV Buying Instead of Leasing Year 0 Years 15 $25,000 $4,670 – $1,155 = $5,825 ? There is a simple method for evaluating leases: discount all cash flows at the aftertax interest rate on secured debt issued by the lessee. Suppose that rate is 5 percent. NPV Leasing Instead of Buying Year 0 Years 15 $25,000 –$1,155 – $4,670 = $5,825 McGrawHill/Irwin Copyright 169。 2023 by The McGrawHill Companies, Inc. All rights reserved. 218 Capital Lease ? A lease must be capitalized if any one of the following is met: – The present value of the lease payments is at least 90 percent of the fair market value of the asset at the start of the lease. – The lease transfers ownership of the property to the lessee by the end of the term of the lease. – The lease term is 75 percent or more of the estimated economic life of the asset. – The lessee can buy the asset at a bargain price at expiry. McGrawHill/Irwin Copyright 169。 2023 by The McGrawHill Companies, Inc. All rights reserved. 210 Chapter Outline Types of Leases Accounting and Leasing Taxes, the IRS, and Leases The Cash Flows of Leasing A Detour on Discounting and Debt Capacity with Corporate Taxes NPV Analysis of the LeaseversusBuy Decision Debt Displacement and Lease Valuation Does Leasing Ever Pay: The Base Case Reasons for Leasing Some Unanswered Questions McGrawHill/Irwin Copyright 169。 2023 by The McGrawHill Companies, Inc. All rights reserved. 215 Leveraged Leases ? A leveraged lease is another type of financial lease. ? A threesided arrangement between the lessee, the lessor, and lenders. – The lessor owns the asset and for a fee allows the lessee to use the asset. – The lessor borrows to partially finance the asset. – The lenders typically use a nonrecourse loan. This means that the lessor is not obligated to the lender in case of a default by the lessee. McGrawHill/Irwin Copyright 169。 2023 by The McGrawHill Companies, Inc. All rights reserved. 2113 The Cash Flows of Leasing ? Cash Flows: Leasing Instead of Buying Year 0 Years 15 $25,000 –$1,155 – $4,670 = –$5,825 ? Cash Flows: Buying Instead of Leasing Year 0 Years 15 –$25,000 $4,670 –$1,155 = $5,825 ? However we wish to conceptualize this, we need to have an interest rate at which to discount the future cash flows. ? That rate is the aftertax rate on the firm’s secured debt. McGrawHill/Irwin Copyright 169。 2023 by The McGrawHill Companies, Inc. All rights reserved. 2121 Reasons for Leasing ? Good Reasons – Taxes may be reduced by leasing. – The lease contract may reduce certain types of uncertainty. – Transactions costs can be higher for buying an asset and financing it with debt or equity