In the Net Advantage to Leasing Calculation, All Cash Flows

question 22

Multiple Choice

In the net advantage to leasing calculation, all cash flows (except salvage value) are discounted at the firm's ____.

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

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