In the Net Advantage to Leasing Calculation, After-Tax Salvage Value

question 41

Multiple Choice

In the net advantage to leasing calculation, after-tax salvage value is discounted at the firm's ____.

• A) weighted (marginal) cost of capital
• B) cost of internal equity capital
• C) cost of external equity capital
• D) after-tax marginal cost of borrowing

---

Definitions:

Format Property

A property in software that allows users to change the appearance or format of data in a database or document, such as font type, size, or color.

Number Field

A number field refers to a field in a database designated to contain numerical data.

Property Sheet

A user interface component that lists the properties of an object and allows the user to edit them.

Relationships Window

A part of database management systems, specifically in applications like Microsoft Access, where users can define, view, and edit relationships between different tables.