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Lease versus buy decision

In the lease versus buy decision, leasing is often preferable

A. Since it does not limit the firm's ability to borrow to make other investments.
B. Because, generally, no down payment is required, and there are no indirect interest costs.
C. Because lease obligations do not affect the riskiness of the firm.
D. All of the above are correct statements.
E. None of the above are correct statements.

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In the lease versus buy decision, leasing is often preferable

A. Since it does not limit the firm's ability to borrow to make other investments. ...

Solution Summary

Answer to a multiple choice question on lease versus buy decision.

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