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 shields on lease payments, which are typically a key advantage of leasing.

What Is the Net Advantage to Leasing If Your ﬁRm