A Lease Versus Purchase Analysis Should Compare the Cost of Leasing

A lease versus purchase analysis should compare the cost of leasing to the cost of owning, assuming which of the following?

A) that the asset purchased is financed with short-term debt
B) that the asset purchased is financed with long-term debt
C) that the asset purchased is financed with debt whose maturity matches the term of the lease
D) that the asset purchased is financed with retained earnings