04-01-2009, 08:40 PM
To my first hand understanding it is a finance lease.
The penalty on cancellation is severe, the lease term is 5 years which is major portion of the total economic life of the asset (i.e. 8 years) and there is guarantee of 50% of residual value at the end of lease term.
Regards
The penalty on cancellation is severe, the lease term is 5 years which is major portion of the total economic life of the asset (i.e. 8 years) and there is guarantee of 50% of residual value at the end of lease term.
Regards