A Mathematical Model To Compare Corporate Leasing Proposals From Lessor Perspective

The purpose of this paper is to examine the perspective of the lessor in a corporate leasing deal and accordingly devise a formula that can equip the lessor to compare different proposals and make the most economically favorable decision. This study carefully identifies various factors associated with a corporate leasing scenario. Hereby, each identified factor is precisely defined and assigned a variable which relates to the corresponding factor. Natures of these variables are carefully studied and basis its type is then listed as either time value of money or money value of time. Subsequently, factors associated with both the types are then converted to a common unit and a linear equation is formed that can help lessor evaluate different proposals.