Question: When computing the incremental cash flows from leasing relative to purchasing, the: a) pretax lease payment is a positive cash flow. b) lost depreciation tax

When computing the incremental cash flows from leasing relative to purchasing, the:

a) pretax lease payment is a positive cash flow.

b) lost depreciation tax benefit is a negative cash flow.

c) tax benefit of the lease payment is a negative cash flow.

d) cost of the asset is a negative cash flow.

e) lease payments are ignored.

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