You are comparing a lease to a purchase.The NPV associated with this analysis is referred to as the:
A)open interest net present value.
B)depreciated net present value.
C)net advantage to leasing.
D)profitability index.
E)net value of purchasing.

Question

Quizplus · Accepted Answer

The NPV associated with comparing a lease to a purchase is referred to as the net advantage to leasing (NAL). It calculates the present value of cash flows associated with leasing and purchasing options, taking into account factors such as depreciation, tax implications, and financing costs. The NAL measures the financial advantage of one option over the other and helps in making an informed decision. The other answer choices are not relevant to this analysis.

You Are Comparing a Lease to a Purchase