Burlington Northern Railroad Company: Equipment Leasing

Darden Business Publishing Cases

ISSN: 2474-7890

Publication date: 20 January 2017

Abstract

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.

Keywords

Citation

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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Publisher

:

University of Virginia Darden School Foundation

Copyright © 1991 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved.

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