Question 1 (1 point) Henry is completing a net advantage to leasing (NAL) analysis to determine whether to buy or lease a new piece of equipment. The lessee is responsible for maintenance costs. When considering the relevant cash flows, the maintenance costs should be: Ignored, since this is not an incremental cash flow. Included, this will be a cost to leasing None of the above. Included, this will be a benefit to leasing. Next Page Page 1 of 5 Next Page Page 2 of 5 Question 2 (1 point) Which of the following is NOT required in order to calculate the net advantage to leasing (NAL)? The cost of the leased asset. The lease payment The lessee's cost of equity. The depreciation tax shield. The lessee's after-tax borrowing rate. Page 2 of 5 Next Page ge 1: 1 Question 3 (1 point) Henry is completing a net advantage to leasing (NAL) analysis to determine whether to buy or lease a 2020 Honda Civic. When considering the relevant cash flows, the annual amount he will spend on gas should be: Page 2: Included, he should find the PV of this expense and add to the cashflows. Page 3: Included, he should find the PV of this expense and subtract from the cashflows. 3 Page 4: None of the above. 4 Ignored, since this is not an incremental cash flow. Page 5: Next Page Page 3 of 5 Question 4 (1 point) Which of the following statements is false of a financial lease? It is a long-term lease It can be cancelled after the equipment is no longer needed. It is binding obligation for the lessee. It is a source of financing. Next Page Page 4 of 5 Submit Quiz 3 of 5 questions saved Question 5 (1 point) Operating leases: Are never cancellable. May be cancellable by the lessor but only with 6 months' notice. May be cancellable by the lessee. Are for a term that is equal to the useful life of the asset. Next Page Page 5 of 5 Submit Quiz 4 of 5 questions saved