Which of the Following Statements Is FALSE

question 15

Multiple Choice

Which of the following statements is FALSE?

• A)Because we are getting the entire asset when we purchase it with the loan,the loan payments are higher than the lease payments.
• B)In a perfect market,the cost of leasing and then purchasing the asset is equivalent to the cost of borrowing to purchase the asset.
• C)With a lease we are financing the entire cost of the asset,with a standard loan we are financing only the cost of the economic depreciation of the asset during its life.
• D)The amount of the lease payment will depend on the purchase price,the residual value,and the appropriate discount rate for the cash flows.

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Definitions:

Suffrage Amendment

Refers to amendments to the U.S. Constitution that expanded voting rights, including the 19th Amendment granting women the right to vote.

Change

The process or act of making something become different, often leading to new structures, behaviors, or paradigms within a society or personal life.

Reconstruction

A period after the American Civil War (1865-1877) aimed at rebuilding and reintegrating Southern states back into the Union.

Reconstruction Amendments

Amendments to the United States Constitution adopted during the Reconstruction era, including the 13th, 14th, and 15th amendments, which abolished slavery, granted citizenship rights, and prohibited voter discrimination based on race.