is the party to a lease that owns the equipment, 1. The is the party leasing the equipment. while the lessee b. lessee; lessor c. lessee; lessee d. lessor; lessor 2. An advantage of leasing equipment versus borrowing and purchasing the equipment is a. working capital is generally conserved b. there generally is less paperwork with the lease c. it is often easy to get rid of an obsolete item d. all of the above 3. In considering whether to lease or buy, a superintendent must consider a. the cost of the item b. the total lease payments c. the timing of all cash payments d. all of the above 4. A utility tractor costs the Alpha Golf Club $25,000. The club chose to pay $10,000 down and then make three annual cash payments of $6,000 each. The amount of interest paid by this club is a. $0 b. $3,000 c. $5,000 d. none of the above 5. The salvage value of a new mower ( 5 years hence) is estimated to be $5,000. The relevant discount rate is 10 percent. In comparing the costs of leasing versus buying, the amount to use for salvage value is a. $0 b. $3,105 c. $5,000 d. none of the above