Which of the following is NOT a good reason for leasing?

	Reduced uncertainty about the decrease in the asset's value over time.
	Leasing provides 100% financing.
	Tax advantage due to differential tax rates.
	Transaction costs are higher when a firm buys and sells fixed asset than when it leases the assets.
	Used as a hedge to reduce obsolescence.

An asset has installed cost of $250,000, a life of 5 years, a CCA rate of 30%, and a salvage value of $5,000. This asset can be leased for 5 years for $50,000 yearly lease payment, with the lease payments due at the beginning of each year. The lessee's marginal tax rate is 35% and borrowing cost is 10%. What is the NPV of this lease agreement to the lessor if it has the same marginal tax rate of 35%.

Question 3 options:

	$33,839
	-$49,548
	-$43,613
	-$33,839
	$52,652