A manager decided to acquire some expensive equipment through the use of an operating lease even though

Question:

A manager decided to acquire some expensive equipment through the use of an operating lease even though a analysis showed that it was more profitable to buy than to lease. However, the purchase alternative would have required the issuance of some bonds. Offer some reasons that would explain the manager’s choice.

Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the...