1. MCQ: if the Hiber machine shop company the displacement rate is 6% and the precise break-even adjusted discount rate is 6.33, then corresponds to a borrowing rate is :

		10%
		10.55%
		9.4%

Generalization of lease model used for which firm?

		Non Tax paying position firm but expect to resume paying taxes at a specific future date
		Non Tax paying position firm
		TAx paying position firm
		Tax paying position firm and expect to stop paying in near future

1. When illustrating the lease valuation model it always assumed that the dollar of leasing displaces one dollar of :

   		Debt
   		tax
   		decrease debt capacity