If a lessor paid $800,000 for an asset, how would the lessee treat this amount in his financial lease analysis?
A) Lessor would ignore it, since it is a lessor cost
B) Lessor would treat it as a cash inflow, since he avoids it by leasing
C) Lessor would amortize it over the lease life as an expense
D) Lessor would discount it by his cost of capital
Correct Answer:
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