If the Tax Rates of the Lessor and Lessee Are

question 40

Multiple Choice

If the tax rates of the lessor and lessee are the same, then the financial lease analysis that shows a $500 positive NPV will suggest that:

• A)the lessor is $500 better off than the lessee.
• B)the user should lease, not buy.
• C)the lessor should lower his lease terms.
• D)The user should buy, not lease.

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Definitions:

Risks

Potential for loss, harm, or other adverse effects resulting from internal or external vulnerabilities, and the possibility that the outcome may differ from expectations.

Selective Presentation

The strategic disclosure of only certain information, while withholding other facts, to influence perception or outcome.

Flexible Position

A negotiator's ability to adjust their demands or stance based on the discussion's progress and the other party's needs.

Advantages

Positive or favorable factors or conditions that contribute to reaching a goal or achieving a desirable outcome.