Tuesday 12 June 2012

The Principle of Self-Interested Behavior says __________.

The Principle of Self-Interested Behavior says __________.
A. to calculate the net advantage of leasing based on the incremental after-tax benefits that leasing will provide.
B. to look for profitable opportunities to lease (or rent) an asset, rather than borrow and buy it.
C. to use discounted cash flow analysis to compare the costs and benefits of leasing, relative to the alternative of borrowing and buying.
D. that leasing transfers the tax benefits of ownership from the lessee to the lessor.
 

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