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Bill Hopen Is the President of the Eastern Sutton Railroad

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Bill Hopen is the president of the Eastern Sutton Railroad Company.The Eastern Sutton is a bridge line that receives traffic from the Union Pacific Railroad and the Burlington Northern railroads at Charleston,West Virginia,and hauls the freight to Denver,Colorado,for connections with other lines to points east.Recently,traffic on the Eastern Sutton has increased dramatically and the railroad is in need of additional locomotives to haul its trains.Accordingly,Bill is considering leasing locomotives to meet the demands of this increase in traffic until new engines can be ordered if the surge subsides.As the controller of the railroad,Bill has asked you to advise him as to the disadvantages associated with leasing generally.

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Disadvantages of leasing for a lessee in...

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