One advantage of leasing is that in many cases, the return to the lessor is quite low so the firm in need of an asset might be better off borrowing to purchase it.

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Leasing can offer advantages such as lower upfront costs, tax benefits, and the ability to easily upgrade to newer technology or equipment, which might not be the case when purchasing an asset through borrowing. The return to the lessor is not inherently low; it is structured into the lease payments and terms.

One Advantage of Leasing Is That in Many Cases, the Return