Quadrent can offer lower interest rates because we invest the Fair Market Value upfront when purchasing the assets for you to lease. This makes the overall cost of the assets lower for you, and is reflected in a lower interest rate.
WACC (Weighted average cost of capital) needs to be applied when analysing any new project or financial investement. It is the average rate that you pay to finance all assets across your business. It is calculated by averaging the rate of all your company's sources of capital (both debt and equity), weighted by the proportion of each component.
If the lease is treated as an ROU asset, the annualised cost will be split across your balance sheet's depreciation and interest costs (based on your WACC). If treated as Low Value, the annualised cost will come out of your income statement as an operating expense.
All end of life costs are included in your lease payments.
How much this investment is worth throughout the term, discounted to today's value.
