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1. Off-Balance Sheet Financing: What is meant by the term off-balance sheet financing? When do leases provide such financing and what are the accounting and

1. Off-Balance Sheet Financing: What is meant by the term off-balance sheet financing? When do leases provide such financing and what are the accounting and economic consequences of such activity?

2. Leasing Cost: Explain why the aftertax borrowing rate is the appropriate discount rate to use in lease evaluation.

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