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Which of the following tends to be a characteristic of an operating lease? Group of answer choices(a) The lease provides on-balance sheet financing in most
Which of the following tends to be a characteristic of an operating lease? Group of answer choices(a) The lease provides on-balance sheet financing in most countries so that it does affect the lessee' s ability to borrow money as well as its tax liability. (b) The risks of ownership tend to be borne by the lessee. (c) This can be thought of as a put option given that the lessee can cancel the lease contract and return the asset back to the lessor if the cash flows that will be generated from the asset are not attractive enough. (d) The lessee has to purchase the leased asset even though the cash flows that will be generated from the asset are not attractive enough. (e) The net present value of an operating lease can be estimated by the net present value of an equivalent finance lease plus the value of the option to cancel the lease contract
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