Article ID: | iaor19942133 |
Country: | United States |
Volume: | 39 |
Issue: | 12 |
Start Page Number: | 1544 |
End Page Number: | 1551 |
Publication Date: | Dec 1993 |
Journal: | Management Science |
Authors: | Yagil Joseph, Gutman Eyal |
Keywords: | finance & banking |
Underlying the widely used multiple-investment-sinking fund (MISF) method for lease evaluation is the determination of a derived lease rate which is a specific rate that provides the lessor with the required yield on equity. To compute this derived lease rate, trial-and-error techniques are traditionally used. In addition to being based on trial-and-error, the employment of these techniques requires a specification of the precise