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A Lessor and Lessee Are Most Able to Maximize Their

Question 102

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A lessor and lessee are most able to maximize their financial communities of interest through a lease contract if the lessor's tax rate is very high and the lessee's very low.Explain how this would be true, and the implications for the type of firms who lease their assets and the type of companies who operate as lessors.

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If a lease analysis shows a positive NPV...

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