In financial lease analysis, there is a comparison between:
A)leasing costs, and owning costs and tax shield benefits foregone.
B)the differing lives of a leased and owned asset.
C)various salvage scenarios.
D)economic benefits of owning or leasing one asset or another.

Question

Quizplus · Accepted Answer

Financial lease analysis involves comparing the leasing costs with the owning costs and any tax shield benefits foregone. This allows companies to determine whether it is more economical to lease or purchase an asset, based on the financial benefits and drawbacks of each option. The other options listed are also important considerations in lease analysis, but they are secondary to the comparison of leasing costs and owning costs.

In Financial Lease Analysis, There Is a Comparison Between