Consider each of the following lease arrangements:

1. Abbaz Corporation signs a two-year lease for office space in a large, downtown office complex. Abbaz plans to have a permanent presence in the downtown area but has moved office premises several times in the past 10 years, motivated by factors such as convenience, quality of building, and price.

2. The Vital Organ Donation Society, a non-profit organization, must acquire a vehicle. It has the authority to borrow money for this purpose but is also considering a five-year lease arrangement, with a subsequent renewal option at a very favourable price, which appears to be much cheaper than the borrowing option.

3. Cahil Limited plans to acquire manufacturing equipment that it could buy outright. Since the company has no spare cash, all the money would have to be borrowed. However, existing loans required the company to maintain a debt-to-equity ratio of no more than 2 to 1 , and the company's balance sheet reflects a ratio very close to this limit now. Cahil is considering a three-year lease with a low annual charge but material per-year contingent usage charges.
4. Bagg Limited has just completed the construction of a new warehouse facility. It is considering two financing options: a 25 -year commercial mortgage or a 25 -year lease. Under the mortgage agreement, interest rates would be fixed for five-year periods but would be renegotiated when each five-year period expired. Under the lease agreement, title would pass to Bagg Corporation at the end of the lease. The lease payments would be renegotiated every 10 years.
5. Dimmins College is considering an arrangement whereby it will sell all its rare book collection to a leasing company, and immediately lease back the collection on a 20 -year lease, with fixed payments for each of the 20 years. At the end of the lease period, the collection will again belong to the College.
6. Elias Limited is attempting to acquire a \(\$ 400,000\) piece of manufacturing equipment for its plant operation, which it believes will significantly reduce its operating costs over the next four years. The equipment would likely be obsolete at that time. The company's friendly banker has offered a four-year loan, for up to \(\$ 320,000\), at prime interest rates. A friendly leasing company has offered a four-year lease covering all the equipment cost. The lease requires equal payments each year; payments are at the end of each year.

Required:
In each example, explain the company's motive for entering into the lease arrangement.