PPT Slide
With the leveraged lease, we get two IRRs. The MIRR is a little over 6%.
Thus, with a $1 million investment, the lessor could finance two such leases and obtain double the amount of NPV: 2($21,875) = $43,750 in profit.
Leveraging increases the risk to the lessor, so the decision to leverage involves a risk/return tradeoff.