Galen Runs a Greek Restaurant and Is Currently Considering Leasing

Multiple Choice

Galen runs a Greek restaurant and is currently considering leasing or purchasing some updated equipment. Which of the following statements is correct?

A) If the equipment he is buying will become outdated in two years, leasing would be a better option than purchasing.
B) Because the restaurant is new and he wants to protect his cash flow, purchasing would be better since purchasing costs less than leasing.
C) If the equipment is leased, the restaurant's lines of credit will be increased.
D) Leasing is always more expensive than purchasing over the term of the lease.