Page 50 - CFA Lecture Day 9 Slides
P. 50

Session Unit 8:

                                                                                                        29. Long-lived Assets


















                                                         tanties                                    Total cash flow is the same


                                                                                                    for an operating lease and a

                                                                                                    finance lease. However,
                                                                                                    cash flow from operations

                                                                                                    is higher with the operating

                                                                                                    lease. With a finance lease,

                                                                                                    the lease payment is
                                                                                                    separated into the interest

                                                                                                    portion (CFO) and principal

                                                                                                    portion (CFI).
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