NET ADVANTAGE TO LEASING
\nˈɛt ɐdvˈantɪd͡ʒ tuː lˈiːsɪŋ], \nˈɛt ɐdvˈantɪdʒ tuː lˈiːsɪŋ], \n_ˈɛ_t ɐ_d_v_ˈa_n_t_ɪ_dʒ t_uː l_ˈiː_s_ɪ_ŋ]\
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Current fund amount an entity saves from an asset's lease versus its outright purchase. This is calculated by subtracting the interest rate on borrowing money to purchase the asset from the asset's possible depreciation. If this number is a positive value, a lease is advisable; if the number is negative, buying is advisable.
By Henry Campbell Black
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