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

Name: In the lease-purchase decision, the discount rate used in the present value analysis is the aftertax cost of debt.
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The aftertax cost of debt is typically used as the discount rate in lease-purchase decisions, as it reflects the cost of borrowing money and is therefore appropriate for evaluating the financial impact of the lease payments over time.

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