From the Lessee's Point of View, If the Net Present

question 78

Multiple Choice

From the lessee's point of view, if the Net Present Value of a lease equals zero, then...

• A) ...the lessee would be paying the lowest payments possible while the lessor gets a return that just covers the cost of capital
• B) ...the lessor is charging the maximum annual lease rate (payment) possible, and the lessee would be better off purchasing the asset
• C) ...there is nothing to gain from the lease, and it is preferable to purchase the asset
• D) ...the cost of leasing equals the cost of purchasing the asset

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Definitions:

Masseter

A facial muscle critical for chewing and biting, located at the angle of the jaw.

Plantar Flexes

The movement that increases the angle between the shin and the top of the foot, pointing the toes downward.

Soleus

A muscle in the calf of the leg that flexes the foot to point the toes downward.

Tibialis Anterior

A muscle located in the front of the shin that helps in dorsiflexion and inversion of the foot.