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An Estimate of the Discounted Value of Future Lease Payments

Question 25

Multiple Choice

An estimate of the discounted value of future lease payments can be obtained in the following way(s) :


A) By discounting future lease payments at the firm's cost of debt or by discounting future lease payments at the firm's cost of capital.
B) By discounting future lease payments at the firm's cost of capital or by applying a multiple to forthcoming minimum lease payments.
C) By discounting future lease payments at the firm's cost of debt or by applying a multiple to forthcoming minimum lease payments.
D) By applying a multiple to forthcoming minimum lease payments.
E) None of the above.

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