Debt Displacement If you can devise a borrowing plan that gives the same cash flow as the lease in every futured period but a higher immediate cash flow,then you should not lease. If the equivalent loan provides the s same future cash outflows as the lease but a lower immediate inflow then leasing is the better. Example (p.596 Eng,p.494 CHN) slide 12slide 12 Debt Displacement Debt Displacement If you can devise a borrowing plan that gives the same cash flow as the lease in every futured period but a higher immediate cash flow, then you should not lease. If the equivalent loan provides the same future cash outflows as the lease but a lower immediate inflow then leasing is the better. Example (p.596 Eng, p.494 CHN)