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Adjustments to financial models reflect the importance of capital structures in assessing companies. Firms may utilize leases for additional capital or opt for traditional debt issuance to finance machinery necessary for generating cash flows. To ensure an accurate comparison, it's essential to treat both types of financing equally; a company relying solely on leases shouldn't be perceived as having a high return on capital if its balance sheet doesn't reflect true financial obligations. Therefore, we incorporate the present value of leases into the company's invested capital, similar to how debt is handled, factoring in after-tax implications and the deductibility of leases. This approach provides a clearer picture of a company's financial health.