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Ann: Appendix 4C - quarterly, page-104

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  1. 7,657 Posts.
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    The machines bought or leased would still be significant cost to the business. It is like saying you don't need to buy 1,000 cars just lease them end of the day you are still paying for them just one is done on installments and a balloon payout the other you put your working capital to them now.

    Say they are 2 month leases 500M of machines say 80% is the lease and 20% balloon payment then you have 400M over the 2 years or 200M p.a. and if you want to keep the machines then you need to pay 100M or go to a new lease with new machines (plus all the costs in setting them up).

    However the leasing company also needs to make money so the 500M could be a 600M total cost if you were to take out the balloon...
 
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