Lease
Arrangement to use asset for set period paying regular fees.
Formula
Total Lease Cost = Monthly Payment × Number of Months
Real World
EasyJet leases most of its aircraft from lessors like AerCap rather than buying them outright, preserving cash and allowing fleet flexibility without the full capital commitment of ownership.
Exam Focus
Compare total lease cost against purchase price to demonstrate financial literacy — examiners reward quantified comparisons.
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