2) Some of the advantages of leasing versus borrowing to buy are as follows, except:

Select one:

a. Passes the risk of obsolescence to the owner of the fixed asset

b. Does not require a high initial investment

c. It has a tax advantage to record the lease payment as an operating expense

d. You can depreciate the asset you are using.

e. Avoid very high issuance and transaction costs.

3) One of the weaknesses of the Payback Period Method is that it does not take into account the cash flows after the repayment of the initial investment. This situation is corrected with the Discounted Payback Period Method.

True or False?