An equivalent loan analysis of a lease payment finds the loan amount that is equal to the present value of the after-tax lease payments, discounted with the firm's after-tax cost of capital.

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This statement is true. An equivalent loan analysis is used to calculate the loan amount that would be necessary to generate the same cash flows as a lease payment. The analysis involves calculating the present value of the after-tax lease payments discounted by the firm's after-tax cost of capital. The resulting loan amount is equal to the cost of the leased asset.

An Equivalent Loan Analysis of a Lease Payment Finds the Loan