DESCRIPTIVE QUESTIONS
  1. Describe the features of term loans as distinct from debentures.
  2. Explain the different types of amortisation schedule of a term loan with the help of a simple example.
  3. Distinguish between:
    1. an operating and a financial lease; and
    2. a sale and lease-back arrangement, direct lease and leveraged lease.
  4. Discuss the NPV approach to the lease versus buy decision.
  5. What do you mean by NAL? Explain it with the help of a simple example.
  6. Examine the IRR method as applicable to the lease versus buy decision.
  7. The gain/loss of the lessor is the mirror image of gain/loss of the lessee. Discuss.
  8. Enumerate the advantages and disadvantages of leasing.

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