Question 15 5 pts Why is the after-tax cost of a firm's debt the appropriate discount rate to use for most of the cash flows in a lease versus buy decision? The uncertainty or riskiness of most cash flows in a lease versus buy decision is approximately the same as that for the cash flows in a debt contract. Because if the firm decides not to lease, the firm will probably take on more debt in order to buy the asset. It is not the appropriate discount rate to use in this situation. Rather the before-tax cost of debt should be used. Accounting standards specify this as the appropriate discount rate for this decision-making process