Multiple Choice
If the present value of the cost of leasing equals the present value of purchasing the asset, the annual lease rate (payment) is set so that the lessor would earn a rate of return on the lease that is
A) greater than the lessor's cost of capital
B) less than the lessor's cost of capital
C) impossible to compare to the lessor's cost of capital
D) equal to the lessor's cost of capital
Correct Answer:
Verified
Correct Answer:
Verified
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