Assumptions a All operating, maintenance and insurance costs are borne by the lessee Lease payments are made at the end of the year (in arrears) ■ Tax is in the same vear a The company will be profitable over the 4 years of the leaseAssumptions ◼ All operating, maintenance and insurance costs are borne by the lessee. ◼ Lease payments are made at the end of the year (in arrears). ◼ Tax is in the same year. ◼ The company will be profitable over the 4 years of the lease