PRIN.OF CORPORATE FINANCE
PRIN.OF CORPORATE FINANCE
13th Edition
ISBN: 9781260013900
Author: BREALEY
Publisher: RENT MCG
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Chapter 25, Problem 6PS

Operating leases Explain why the following statements are true:

  1. a. In a competitive leasing market, the annual operating lease payment equals the lessor’s equivalent annual cost.
  2. b. Operating leases are attractive to equipment users if the lease payment is less than the user’s equivalent annual cost.
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