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Why companies often choose to lease certain assets

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Reference no: EM132934348

Problem 1: Which of the following is not true as to why companies often choose to lease certain assets rather than buying such assets?

a. leasing might offer protection against the risk of declining asset values
b. monthly lease payments are often lower than comparable monthly loan repayments if the company borrows to purchase the asset
c. leasing offers flexibility and a lower cost when disposing of the leased asset
d. none of the possible answers are provided
e. leasing reduces the up-front cash needed to purchase an asset

Reference no: EM132934348

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