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You may come across several situations where you may need to dedide whether to lease or to buy assets, such as equipment, a car, a

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You may come across several situations where you may need to dedide whether to lease or to buy assets, such as equipment, a car, a house, and so forth. You may have several apportunities where you may need to evaluate leases from either a lessee's or a lessor's perspective. Thus, it is important to understand certain issues and benefits related to leases and the fine print used in lease contracts. Based on your understanding of leases, which of the following statements are true? Statements True False The concepts invalved in the analysis of real estate leasing is contrary to the concepts involved in the analysis of equipment leasing. A firm with leases instead oflong-berm loans is likely to appear stronger in a O superficial credit analysis. If the tax laws changed to allow companies to depreciate their equipment oera O shorter period of time, the lessor would get larger tax credits and fasber depreciation write-offs Lease contracts in which residual values are very high are likely to have lower O costs for leasing

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