The WACC is not used in the lease versus purchase decision because: O A. the...
70.2K
Verified Solution
Question
Accounting
The WACC is not used in the lease versus purchase decision because: O A. the WACC was used in the decision to acquire the asset, this is only a financing decision. OB. the WACC is used only when a lease alone is considered and not a lease versus purchase. OC. the WACC does not include the lease cost of capital and therefore should not be used. OD. tax rates of the lessor may be different than the lessee and therefore the WACC is incorrect. E. when a bank arranges a lease they do not consider the lessee's cost of capital

Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.