Burlington Northern Railroad Company: Equipment Leasing

Darden Business Publishing Cases

ISSN: 2474-7890

Publication date: 20 January 2017


The director of equipment finance at Burlington Northern Railroad Company must decide if a leveraged-lease proposal is acceptable. The case emphasizes the importance of the lessee's tax status to the value of the lease and how the perception of residual value affects the valuation for both the lessee and lessor. To value the lease properly, the student must identify the relevant cash flows and the appropriate discount rates for those flows.



Eades, K. (2017), "Burlington Northern Railroad Company: Equipment Leasing", Darden Business Publishing Cases. https://doi.org/10.1108/case.darden.2016.000055

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