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

Question

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Leasing can result in high costs to the lessee due to the lessor expecting a return on their investment. Thus, borrowing to purchase an asset may be a more financially advantageous option for the firm.

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