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Average: 4 Attempts: A Aa 18. More on lease analysis across several situations where you may need to decide whether to lease or to buy

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Average: 4 Attempts: A Aa 18. More on lease analysis across several situations where you may need to decide whether to lease or to buy assets, such as a car, a house, and so forth. You may have several opportunities where you may need to evaluate leases You may come equipment, from either a lessee's or a lessor's perspective. Thus, it is important to understand certain issues and benefits related to leases and the fine print used in lease contracts Based on your understanding of leases, which of the following statements are true? Statements True False Lease contracts in which residual values are very high are likely to have lowerOO costs for leasing A firm with leases instead of long-term loans is likely to appear stronger in superficial credit analysis i- A short-term lease with high annual payments wil increase reported expenses and decrease the reported proft, This would help ? firm save the alternative minimum tax (AMT) The concepts involved in the analysis of real estate leasing is contrary to the conoepts involved in the analysis of equipment leasing

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