In Computing the NPV of the Lease/buy Decision, the Cost

question 163

True/False

In computing the NPV of the lease/buy decision, the cost of the equipment to be leased represents
a cash inflow to the lessor and a cash outflow to the lessee.

---

Definitions:

Exchange Rate

The rate at which one currency can be exchanged for another, often used in international trade and investment.

Triangle Arbitrage

An arbitrage strategy that exploits disparities in currency exchange rates in three different markets to make a risk-free profit.

Australian Dollars

The currency of Australia, represented as AUD, which is a major global currency used in international financial transactions.

Japanese Yen

The official currency of Japan, often symbolized as ¥ and known for its role in the foreign exchange market.