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1. The term "net advantage to leasing" is defined as:
a. The after-tax cash flows received from a lessee.
b. The NPV of the decision to lease an asset instead of buying it.
c. The future value of the incremental cash flows received from a lessee.
d. The after-tax benefit to a lessor of an asset.
e. The incremental sales by a manufacturer based on its leasing operations.
2. A project which has a payback period longer than its life also has a positive NPV.
True
False
3. In most industries, planning beyond the period of one year is not very useful.
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