The risk of the lease payments is ________ the risk of secured debt,so it is reasonable to discount the lease payments at the firm's secured borrowing rate.

Question

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The statement says that the risk of lease payments is no greater than the risk of secured debt. Therefore, it is reasonable to discount the lease payments at the firm's secured borrowing rate. If the risk of lease payments was greater than the risk of secured debt, then it would not be reasonable to discount the lease payments at the secured borrowing rate. Therefore, the best choice is C, which says that the risk of lease payments is no greater than the risk of secured debt.

The Risk of the Lease Payments Is ________ the Risk