Many lessors require a security deposit in the form of a cash payment or other pledged collateral.

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Many lessors require a security deposit in the form of a cash payment or other pledged collateral. Suppose Lambert requires Wildcat to pay a $1.5 million security deposit at the inception of the lease. If the lease payment is still $2.05 million, is it advantageous for Wildcat to lease the equipment now?

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Corporate Finance

ISBN: 978-1259918940

12th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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