A student made three arguments about the firm's decision whether to lease or buy:

1. Assets that have high sensitivity to use are likely to be leased as the risk of ownership is bored by the lessor 2. If both firms have different discount factors, then the lease agreement can be beneficial to both the lessee and the lessor 3. The depreciation tax shield is not included in the NPV (lease - buy) because depreciation is not a cash expense

Which of the statements are correct?