Explain why the following statements are true: a. In a competitive leasing market, the annual operating lease
Question:
Explain why the following statements are true:
a. In a competitive leasing market, the annual operating lease payment equals the lessor’s equivalent annual cost.
b. Operating leases are attractive to equipment users if the lease payment is less than the user’s equivalent annual cost.
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a The lessor must charge enough to cover the present value of the costs of owning and operating the ...View the full answer
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Related Book For
Principles of Corporate Finance
ISBN: 978-0077404895
10th Edition
Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen
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