Kelvin Limited, a Manufacturing Company in Regina, Is Considering Acquiring

Multiple Choice

Kelvin Limited, a manufacturing company in Regina, is considering acquiring a piece of land on which to build its new robotics-based production facility, all with a combined market value of $6500 000. If Kelvin ends up financing the acquisition with a lease, SaskLease Limited has limited its involvement to$1 300 000 while a bank is willing to lend Kelvin the remaining $5 200 000. What type of lease would this arrangement imply?

A) A sale-leaseback arrangement
B) A direct financial lease
C) An operating lease
D) A leveraged lease