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If a Firm Enters a Sale and Leaseback Agreement, Then

Question 17

Multiple Choice
If a firm enters a sale and leaseback agreement, then:

If a firm enters a sale and leaseback agreement, then:


A) the lessor realizes an immediate cash inflow.
B) the lease automatically becomes a nonrecourse lease.
C) both the lessor and the lessee benefit.
D) the lessor benefits while the lessee loses.
E) the lessee must forfeit the right to repurchase the asset at a later date.

Correct Answer:

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