In making the decision to lease versus buy, leasing is often preferable:

Question 7 options:

a)	because, generally, no down payment is required, and there are no indirect interest costs.

b)	because it has no effect on the firms ability to borrow to make other investments.

c)	because lease obligations do not affect the firms risk as seen by investors.

d)	because the lessee owns the property at the end of the lease term.

e)	because the lessee may have greater flexibility in abandoning the project in which the leased property is used than if the lessee bought and owned the asset.