The Relevant Discount Rate to Use in a Lease-Purchase Analysis

question 177

Multiple Choice

The relevant discount rate to use in a lease-purchase analysis is the:

• A) Pre-tax borrowing rate.
• B) After-tax borrowing rate.
• C) Firm's weighted average cost of capital.
• D) Current risk-free rate of return.
• E) Firm's pre-tax weighted average cost of capital

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Definitions:

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