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In a lease versus buy decision, the assets to be acquired are typically depreciated under the purchase option. If the assets are immediately expensed instead

In a lease versus buy decision, the assets to be acquired are typically depreciated under the purchase option. If the assets are immediately expensed instead of being depreciated, what will happen to the present value cost of buying?

The present value cost of buying will decrease.

  • The present value cost of buying will increase.
  • The impact upon the present value cost of buying cannot be determined.
  • The present value cost of buying will stay the same.

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