When evaluating a true tax lease,we discount the incremental cash flows using the pre-tax borrowing rate.

Name: When evaluating a true tax lease,we discount the incremental cash flows using the pre-tax borrowing rate.
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When evaluating a true tax lease, the incremental cash flows should be discounted using the after-tax borrowing rate, not the pre-tax borrowing rate, because the tax effects are relevant to the analysis.

When Evaluating a True Tax Lease,we Discount the Incremental Cash