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The Cash Flows of Leasing Differ from Buying

Question 46

Multiple Choice

The cash flows of leasing differ from buying.A purchase requires a large initial outlay followed by a series of ________.In contrast,the cost of leasing equipment ________.


A) evenly spread cash inflows over time; has more CCA tax shields
B) CCA tax shields; has more evenly spread over time
C) evenly spread cash outflows over time; has more CCA tax shields
D) evenly spread cash inflows over time; has more evenly spread cash outflows over time

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