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In computing the present value of the lease payments, the lessee should a. use its incremental borrowing rate in all cases. b. use both its

In computing the present value of the lease payments, the lessee should

a. use its incremental borrowing rate in all cases.

b. use both its incremental borrowing rate and the implicit rate of the lessor, assuming that the implicit rate is known to the lessee.

c. use the implicit rate of the lessor, assuming that the implicit rate is known to the lessee.

d. use the implicit rate in all cases.

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