If an equivalent loan has the same cash flows as a lease, and results in a $1,500 higher present value, one could conclude that: present value than the lease analysis indicated, this shows:

Multiple Choice

a) that leasing is preferable to buying the asset, since owning costs $1,500 more.

b) that either is acceptable, since the cash flows are the same.

c) one should not lease.

d) that owning will require more capital up front.