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Which of the two statements below are correct? You can only mark two alternatives Select one or more alternatives: To evaluate the leasing decision for

Which of the two statements below are correct? You can only mark two alternatives

Select one or more alternatives:

  • To evaluate the leasing decision for a true tax lease, you should compare the cost of leasing with the cost of financing using an equivalent amount of leverage (a lease-equivalent loan)
  • In a perfect market, the Present Value of a Lease is equal to the Purchase Price minus the Present Value of any Residual Value
  • You may never obtain ownership of an asset that you have leased
  • The lessee is the owner of the asset, who is entitled to the lease payments in exchange for lending the asset
  • Capital preservation is a valid argument for leasing

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