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MANAGEMENT DEGREE
3RD YEAR
CORPORATE FINANCE
DEBT FINANCING - Leasing

Consider the following assumptions for financing the acquisition of a car under a
leasing contract:

PVP: €56.400

Initial Payment: €15.000 (no contractual expenses)

Period: 48 months (48 anticipated rents, the 1st rent corresponding to the initial
payment)

Residual Value: €917,07 to be paid at the end of the contract (end of the 48th month)

Contractual expenses (to be paid at the beginning): €150

VAT: 23%

Annual Nominal Interest Rate: 6%

Please compute the monthly rent and the effective cost of financing.

1 Corporate Finance