When computing the incremental cash flows from leasing relative to purchasing,the:

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When computing incremental cash flows from leasing relative to purchasing, the lost depreciation tax benefit is a negative cash flow because when leasing, the lessee does not own the asset and cannot claim depreciation tax benefits. The cost of the asset is not a cash flow, and the lease payments and tax benefit of the lease payment are positive cash flows. Ignoring lease payments would not provide an accurate calculation of the cash flows.

When Computing the Incremental Cash Flows from Leasing Relative to Purchasing,the