From the following statements, identify the steps involved in lease analysis from a lessor's perspective. Check all that apply. Determine the invoice price of the leased equipment plus any lease payments made in advance Check and ensure that the lessor's cost of capital is more than the rate of return on the lease Determine the net cash outlay of the lease agreement Determine periodic cash inflows from the lessee Pele Corp. is a professional leasing company. The leasing manager has to evaluate some lease agreements under the following conditions: . The company's marginal federal-plus-state income tax rate is 40%. The company has alternative investment options of similar risk that yield 8.50%. Assuming all other factors and values are constant among these leases, from the lessor's perspective, which of the following is the best lease? A lease that generates an after-tax rate of return of 6.40% A lease that has an MIRR of 4.00% A lease that has an NPV of - $45,000 A lease that has an IRR of 4.60% You probably noticed that lease analysis seems a bit like capital budgeting analysis, because the cash flows are estimated over the life of the project or lease. The present value of the cash flows dictates the manager's decision. Are cash flows that are estimated in lease analysis more or less risky than capital budgeting cash flows? Less risky More risky From the following statements, identify the steps involved in lease analysis from a lessor's perspective. Check all that apply. Determine the invoice price of the leased equipment plus any lease payments made in advance Check and ensure that the lessor's cost of capital is more than the rate of return on the lease Determine the net cash outlay of the lease agreement Determine periodic cash inflows from the lessee Pele Corp. is a professional leasing company. The leasing manager has to evaluate some lease agreements under the following conditions: . The company's marginal federal-plus-state income tax rate is 40%. The company has alternative investment options of similar risk that yield 8.50%. Assuming all other factors and values are constant among these leases, from the lessor's perspective, which of the following is the best lease? A lease that generates an after-tax rate of return of 6.40% A lease that has an MIRR of 4.00% A lease that has an NPV of - $45,000 A lease that has an IRR of 4.60% You probably noticed that lease analysis seems a bit like capital budgeting analysis, because the cash flows are estimated over the life of the project or lease. The present value of the cash flows dictates the manager's decision. Are cash flows that are estimated in lease analysis more or less risky than capital budgeting cash flows? Less risky More risky