All else equal, the lower the cost of the equipment to be leased, the greater the net advantage to leasing (NAL) to the lessee.

Question

Quizplus · Accepted Answer

The net advantage to leasing (NAL) is determined by comparing the cost of leasing to the cost of purchasing. Lower equipment cost does not automatically mean a greater NAL; factors like lease terms, interest rates, and tax implications also play significant roles.

All Else Equal, the Lower the Cost of the Equipment