Leasing is typically a financing decision and not a capital budgeting decision.The decision to acquire the asset is a "done deal" before the lease analysis begins.Therefore,in a lease analysis,we are concerned simply with whether to finance the asset with a lease or with a loan.

Question

Quizplus · Accepted Answer

The statement accurately describes the nature of lease analysis as focusing on the financing decision rather than the decision to acquire the asset itself.

Leasing Is Typically a Financing Decision and Not a Capital