Test: Final

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Question $4$ of $30$

Questions

MC$\mathrm{.}19\mathrm{.}022$

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$4\mathrm{.}0$

In the lease versus buy decision, leasing is often preferable

a$.$ because it has no effect on the firm's ability to borrow to make other investments.

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b$.$ 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

$6.$ the asset.

$\%$

c$.$ because lease obligations do not affect the firm's risk as seen by investors.

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d$.$ because, generally, no down payment is required, and there are no indirect interest costs.

$9.$

e$.$ because the lessee owns the property at the end of the least term.

$10.$

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