In a perfect capital market,the PV of lease payments will be equal to the purchase price of the asset plus the PV of the residual value of the asset.

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In a perfect capital market, the present value (PV) of lease payments will be equal to the purchase price of the asset, not the purchase price plus the PV of the residual value. The residual value is considered in the lease payments calculation, not added on top of the purchase price.

In a Perfect Capital Market,the PV of Lease Payments Will