In the lease versus buy decision, leasing is often preferable A. because the lessee owns the property
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Question:
In the lease versus buy decision, leasing is often preferable
A. | because the lessee owns the property at the end of the lease term. | |
B. | because lease obligations do not affect the firm's risk as seen by investors. | |
C. | because, generally, no down payment is required, and there are no indirect interest costs. | |
D. | because it has no effect on the firm's ability to borrow to make other investments. | |
E. | because the lessee may have greater flexibility in abandoning the project in which the leased property is used than if the lessee bought and owned the asset. |
Related Book For
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
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