Finance Lease Decisions, Internal Rate Of Return Indicators Applied Research

The Financial lease is also named Modern lease, which combines the traditional lease, transactions and the finance. It is an usual way to raise funds by raising assets. Now the Financial lease has become one of the most important methods of financing in modern enterprises, and its impact on global economy is more and more significant. How does the financial lease company carry on the project income decision-making, how to inspect the project the profit making, has been the financial lease company matter of concern.This paper will focus on finance leases characteristics of the decision-making, through actual lease financing case, the internal rate of return analysis on indicators of the factors and further demonstrated in the decision-making finance lease, the lessor target internal rate of return of the inevitable and rationality. Financing projects through the establishment of leasing portfolio decision-making indicators, that is, internal rate of return and capital indicators yield indicator, and the leasing decision-making more efficient and effective.Papers from the body of five main components:The first part is introduction, which introduces the ideas and main contribution of this paper. The second part analyses traps in using IRR. The third part is the leasing decision-making evaluation method of comparative analysis. The fourth part is the application of reasonable using IRR during the leasing decision-making. The fifth part is conclusion.Through this demonstration, the paper comes to the following conclusions: (1) IRR is applicable to the leasing of the project decision-making. (2) Application of the leasing decision-making of IRR is limitation. (3) TCR is e supplementary role in decision-making in the finance lease.