In the lease-versus-purchase decision,the discount rate used in the present value analysis is the after-tax cost of debt.

Name: In the lease-versus-purchase decision,the discount rate used in the present value analysis is the after-tax cost of debt.
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The discount rate used in the present value analysis is the after-tax cost of debt because it reflects the cost of financing the lease or purchase with debt, after factoring in the tax benefits of debt interest payments.

In the Lease-Versus-Purchase Decision,the Discount Rate Used in the Present