Describe how the net advantage to leasing is measured.
Multiple choices are:
the net advantage to leasing is simply the NPV of leasing versus buying the asset
the net advantage to leasing is the present value of the incremental after-tax cash flows associated with the lease minus the purchase price
debt-service parity is used to correctly measure the net advantage to leasing
the net advantage to leasing adjusts for the typically higher percentage of financing that leasing naturally provides
A and B
A and C
A and D
B and C
B and D
C and D
all but A
all but B
all but C
all but D
all are true