The WACC is not used in the lease versus purchase decision because: O A. the...

70.2K

Verified Solution

Question

Accounting

image
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

Answer & Explanation Solved by verified expert
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!
Become a Member

Other questions asked by students