National Defense and Clean Air Are Similar in That Both

question 144

Multiple Choice

National defense and clean air are similar in that both are _____, but they differ in that national defense is _____, while clean air is not.

• A) rival in consumption; excludable
• B) nonrival in consumption; excludable
• C) excludable; rival in consumption
• D) nonexcludable; nonrival in consumption

Understand the concept of present value and how to calculate it in the context of leasing versus buying decisions.

Grasp the impact of depreciation, including straight-line and MACRS, on tax shields and cash flows.

Differentiate between operating leases and financial leases and understand their characteristics.

Identify the factors affecting the net advantage to leasing (NAL) and how to compute it.