The Tax Savings from the Lease Payments and from CCA

The tax savings from the lease payments and from CCA deductions are also ________ cash flows,as they are predetermined and will be realized as long as the firm generates positive income.Therefore,a common assumption in practice is to use the firm's ________ for these cash flows as well.

A) low-risk; borrowing rate
B) high-risk; borrowing rate
C) low-risk; required rate of return
D) high-risk; required rate of return