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Question 14 1 pts You are a consultant that has undertaken the financial evaluation of a standard finance lease for a company that is an

Question 14 1 pts You are a consultant that has undertaken the financial evaluation of a standard finance lease for a company that is an asset user. You find that the NPV of leasing versus borrowing to buy the asset (i.e. the financing decision) is positive. Which of the following statements represent a correct interpretation of your result? (a) The asset user should cancel the lease before the contract ends. (b) The asset user will be better off by leasing the asset as opposed to borrowing to buy the asset. (c) Operating cash flows need to be incorporated into the analysis in order to arrive at a decision as to whether the asset user will be better or worse off by leasing rather than borrowing to buy the asset. (d) More than one of the above statements are correct. (e) None of the above statements is correct.

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