Yes. Accounting for capital leases is heavily based on such financial calculations as present values and internal rates of return. Because of this, EZLease includes financial calculation routines that you can use separate from actual lease accounting. This can be much simpler than using a financial calculator or a spreadsheet when dealing with multiple payment streams.
For example, to get the present value or internal rate of return for a payment stream, you can enter the financial data as if it were a string of lease payments. To do this, create a new “lease” in a separate file (so it is not confused with your actual leases). To get the present value of a payment stream, enter the payments in the rent payments section of the input screen, and the interest rate in the incremental rate field, then view or print a detail classification report to see its present value. To get the internal rate of return for a payment stream, enter the present value as the fair value, enter the payments in the rent payments section, enter the future value (if any) as the guaranteed residual, and enter .001 (the minimum) for the incremental rate. View or print a classification report; the internal rate of return is the capital rate for the lease. (If EZLease says that the “lease” is operating, it means that the payments are less than the present value and the internal rate of return would be negative; EZLease cannot provide negative rates.)
When you use EZLease this way, you still need to enter all the required fields, such as the lease number, begin date, and economic life. Treat any period when no payments are made as a rent step with 0 rent; cash inflows during the term should be entered as negative rents. You should always system-classify the lease, to make sure all the financial calculations are completed.