Off-balance sheet financing implies that:

a. leases show up in the income statement, but not the balance sheet.

b. leases would be amortized in a separate account not in the lessee's balance sheet.

c. leases would not be capitalized in financial statements.

d. leases would be capitalized.

2) If a financial lease analysis shows a NPV of $1,750 that means:

O a. it will cost the lessee $1,750 more to lease.

O b. the lessor should raise his annual lease payments by $1,750.

O c. the lessee will have to put down $1,750 as a lease deposit.

O d. it will cost the lessee $1,750 more to own.