3. [Leases; effect of interest rate] For assets under capital leases, lease expense has two components: interest and amortiza- tion (depreciation). Assume that a lease can be capitalized at ei- ther 9% or 10%. Compare the effects of this choice on the lessee in the first year and over the life of the lease on: (i) Interest expense (ii) Amortization expense (ii) Total lease expense

(iv) Cash flow from operations (v) Average assets (vi) Average liabilities