Upon successful completion of this course you will be able to:
- Compare and contrast the economics of alternative lease decisions.
- Communicate the impact of common real estate transactions on a user's financial statements and reports.
- List the benefits and drawbacks to users and investors in a sale-leaseback transaction.
- Calculate and interpret the net present values (NPVs) of the user’s continue-to-own and the sale-leaseback alternatives.
- Calculate and interpret the yield (internal rate of return) of the differential cash flows after tax from the user's continue-to-own and the sale-leaseback alternatives.
- Calculate and explain the sales price point of indifference where the NPVs of the user's continue-to-own and the sale-leaseback alternatives are equal.
- Measure the impact of generally accepted accounting principles (GAAP) reporting on the user's financial statements if a sale-leaseback is affected.
- Calculate and interpret certain measures of investment performance, including acquisition cap rate, before tax cash on cash, before- and after-tax internal rate of return (IRR), and capital accumulation for a potential investor in a sale-leaseback transaction.