What is the net advantage to leasing if your firm, for whatever reason, does not have to pay any taxes for at least the next three years?
A) -$122,051
B) -$63,083
C) -32,689
D) -$24,121
E) -$12,060

Question

Quizplus · Accepted Answer

The net advantage to leasing is negative because the firm does not benefit from tax deductions associated with leasing, which would otherwise reduce the cost of leasing compared to buying.

What Is the Net Advantage to Leasing If Your Firm