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Identify the reasons why companies chose an operating lease. 1. To eliminate the impact on leverage covenant calculations II. To report less net profit
Identify the reasons why companies chose an operating lease. 1. To eliminate the impact on leverage covenant calculations II. To report less net profit in the early years of the lease III. Provides 100% financing IV. To stay in compliance with capital expenditure covenants 1 & 11 O I, II & IV O I, III & IV O I, II, III & IV
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