5. Operating leases (S26.3) Explain why the following statements are true: a. In a competitive leasing market,
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5. Operating leases (S26.3) Explain why the following statements are true:
a. In a competitive leasing market, the annual operating lease payment equals the lessor’s equivalent annual cost.
b. Operating leases are attractive to equipment users if the lease payment is less than the user’s equivalent annual cost.
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Related Book For 
Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans
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