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The lost depreciation tax shield used in lease versus purchase analysis applies only when the lessee firm: a) commits to purchasing the leased asset at
The lost depreciation tax shield used in lease versus purchase analysis applies only when the lessee firm:
a) commits to purchasing the leased asset at the end of the lease term
b) depreciates all of its assets on a straight-line basis
c) commits to a lease term of three years or longer
d) originally owned the equipment that it now plans to lease
e) has sufficient taxable income to offset that tax shield
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