In Valuing the Lease Versus Purchase Option, the Relevant Cash

question 19

Multiple Choice

In valuing the lease versus purchase option, the relevant cash flows are the:

• A)tax shield from depreciation.
• B)investment outlay for the equipment.
• C)a decrease in the firm's operating costs that are not affected by leasing.
• D)All of the above are relevant.
• E)None of the above are relevant.

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