1. As a practical matter, the lessee uses a single discount rate for lease analysis, but a more refined approach would do which of the following?

A) use a different discount rate for every line on the lease analysis' cash flows, and so reflect differing risk for each cash item.

B) use a zero discount rate for the lease payment, a high rate only for the CCA tax benefits, and a middle rate for the other cash flows.

C) use one discount rate for the lease tax shelter, and another for the other cash flows

D use a low, middle, and high discount rate and pick average result.

2. Lease capitalization value determination requires one of the following methods:

A) Finding the net present value of future lease payments.

B) Recording the asset's purchase price as the lessee's asset.

C) The lessor shows the asset's effect on his leverage.

D) Altering the lessee's restrictive covenants by the amount of the asset's value.