Page 41 - FINAL CFA I SLIDES JUNE 2019 DAY 8
P. 41

Session Unit 8:

                                                                                                        29. Long-lived Assets

                                                                                                        $69,302/4















                                                         tanties                                 Total cash flow = same operating



                                                                                                 lease and a finance lease.



                                                                                                 However, CFO is higher with the

                                                                                                 operating lease ($20,000).



                                                                                                 With a finance lease, the lease
                                                                                                 payment is separated into the

                                                                                                 interest portion (CFO) and
                                                                                                 principal portion (CFI).
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