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Assume that both the lessor and the lessee have the same interest and tax rates and there are no transaction costs. Given this, the best

Assume that both the lessor and the lessee have the same interest and tax rates and there are no transaction costs. Given this, the best lease agreement results in:

an NPV of zero for both parties.

a benefit for the lessor and a zero gain for the lessee.

a benefit for the lessee and a zero gain for the lessor.

a benefit for both parties.

a loss for both parties.

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