ECONOMIC IMPLICATIONS OF MULTIPLE RATES OF RETURN IN THE LEVERAGED LEASE CONTEXT.

The article focuses on the economic implications of multiple rates of return in the leveraged lease context. The aim of the article is to investigate the fundamental financial implications of the leveraged lease, demonstrate the inadequacies of the traditional computational techniques, and formulate a reliable method for the calculation of a meaningful yield on the participant's equity investment. It is explained that the problems raised with multiple rate of return usually occurs only in rare instances. The article also reports that the financial community is increasingly putting an importance on leveraged leasing.