Assume that you are examining a lease versus buy analysis and you suddenly realize that the residual value is considered to be more risky than the rest of the cash flows. Then, which of the following is correct?

	A.	If the residual value were included as an outflow (a negative cash flow), the increased risk would be reflected by applying a lower discount rate to the residual value cash flow.
	B.	The discount rate applied to the cash flows is irrelevant of the riskiness of the cash flows.
	C.	The discount rate applied to the residual value inflow (a positive cash flow) should be decreased to account for the increased risk.
	D.	The before-tax cost of debt should be used as the discount rate, instead of the after-tax cost of debt.
	E.	The discount rate applied to the residual value outflow (a negative cash flow) should be increased to account for the increased risk.