Total views : 288

Computer Modeling of Leasing Operations

Affiliations

  • Joint Stock Company, Central Research Institute of Economy, Management and Information Systems, Electronics, Moscow, Russian Federation
  • Institute of Innovation and Basic Postgraduate Training, St. Petersburg State University of Aerospace Instrumentation, St. Petersburg, Russian Federation
  • The Department of Higher Mathematics and Systems Modeling of Complex Processes, Saint-Petersburg University of State Fire Service of Emercom of Russia, St. Petersburg, Russian Federation

Abstract


Objectives: The article covers the role of leasing as a financial tool which ensures modernization of scientific and production technical bases of industrial enterprises. Methods: The similarity of long-term crediting conditions and financial leasing underlies the efficiency analysis of the leasing operations, which are carried out by the two main parties of the leasing transaction – the lessee and the lessor. A number of provisions on cash flow management were formulated starting from different types of taxes and considering the time factor. The formulated provisions were taken into account when developing a comparison model of leasing and loan. Findings: The authors have provided a brief overview of leasing schemes and a more detailed outline of the financial leasing scheme underlying the suggested computer models. The basic components of the leasing payments are considered in the context of the general guidelines which were formulated in "Methodical Recommendations on the Calculation of Lease Payments", elaborated by the Ministry of Economy of the Russian Federation. The basic components are supplemented with specific ones that affect the calculation of the lease payments. The two computer models were elaborated with the help of MS Excel spreadsheet processor based on financial models under consideration: the model for calculating the lease payments and the comparison model of leasing and loan. The suggested models are practically tested in relation to the implementation of the financial leasing scheme. It is shown that in addition to the organizational advantages in some cases, leasing can be more effective than a loan from the economic point of view as well, which is far from being obvious at first glance. Application/Improvements: Increased use of leasing is expected, which is determined by the import substitution policy and the need for companies to receive budget funds, to switch to new domestic equipment.

Keywords

Computer Modeling, Leasing, Financial Modeling, Modernization of Enterprises, MS Excel Spreadsheet Processor.

Full Text:

 |  (PDF views: 453)

References


  • Joshi М. The concepts and practice of mathematical finance. Cambridge University Press; 2008.
  • Roberts AJ. Elementary calculus of financial mathematics. Society for Industrial and Applied Mathematics; 2009.
  • Omidzadeh D. Optimization of customers credit evaluation for Iran Khodro leasing company using the neural network algorithm. Indian Journal of Science and Technology. 2015 Oct; 8(28). DOI: 10.17485/ijst/2015/v8i28/81887.
  • Amirbekova D. The knowledge competence development and use of information technologies in small and medium- sized enterprises in Kazakhstan. Indian Journal of Science and Technology. 2016 May; 9(20). DOI: 10.17485/ijst/2016/v9i20/94475.
  • Gerver RK, Sgroi RJ. Financial algebra. Cengage Learning; 2010.
  • Cleaves С, Hobbs М, Noble J. Business math. Prentice Hall; 2011.
  • Ross MR. An elementary introduction to mathematical finance. Cambridge University Press; 2011.
  • Bolviken E. Computation and modelling in insurance and finance. Cambridge University Press; 2014.
  • Avon J. The basics of financial modeling. Apress; 2015.
  • Evstigneev IV, Hens T, Schenk-Hoppe KR. Mathematical financial economics: A basic introduction. Springer; 2015.
  • Dokuchaev N. Mathematical finance. New-York: Routledge; 2007.
  • Vecer J. Stochastic finance: A numeraire approach. New-York: CRC Press; 2011.
  • Crepey S. Financial modeling: A backward stochastic differential equations perspective. Springer; 2013.
  • Chin E, Olafsson S, Nel D. Problems and solutions in mathematical finance, Vol. I: Stochastic calculus. New-York: Wiley; 2014.
  • Kennedy D. Stochastic financial models. New-York: Chapman and Hall/CRC; 2014.
  • Nicolay D. Asymptotic chaos expansions in finance: Theory and Practice. Springer; 2014.
  • Contino RM. The complete equipment-leasing handbook: A deal maker’s guide with forms, checklists, and worksheets. AMACOM; 2002.
  • Shabashev VA, Fedulova AE, Koshkin AV. Leasing: fundamentals of theory and practice. Moscow: Knorus; 2005. [in Russian]
  • Gazman VD. Leasing. Financing and securitization. Moscow: Vysshaya Shkola Ekonomiki; 2011. [in Russian]
  • Alhabeeb MJ. Mathematical finance. New-York: Wiley; 2012.
  • Filosofova TG. Leasing business. Moscow: UNITI-DANA; 2012. [in Russian]
  • Semenihin VV. Leasing. Moscow: Eksmo; 2012. [in Russian]
  • Sengupta C. Financial modeling using excel and VBA. Wiley; 2004.
  • Day A. Mastering financial mathematics in microsoft excel: A practical guide for business calculations. Prentice Hall; 2010.
  • Lai DCF, Tung HKK, Wong MCS et al. Professional financial computing using excel and VBA. Wiley; 2010.
  • Charnes J. Financial modeling with crystal ball and excel. John Wiley and Sons; 2012.
  • Fairhurst S. Using excel for business analysis, Wiley; 2012.
  • Benninga S. Financial modeling. The MIT Press; 2014.
  • Alastair D. Mastering financial mathematics in microsoft excel. FT Press; 2015.
  • Goossens F. How to implement market models using VBA. Wiley; 2015.
  • Guidelines for the calculation of lease payments, Minekonomiki RF; 1996 Apr 16. [in Russian].

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.