Which one of these can be ignored when valuing a purchase versus a lease? tax shield...

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Which one of these can be ignored when valuing a purchase versus a lease? tax shield...

Which one of these can be ignored when valuing a purchase versus a lease?

		tax shield from depreciation
		investment outlay for the asset
		changes in operating costs related to the acquired asset
		lease payments
		taxes

business accounting

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Answer 1

Answer #1

B.changes in operating costs related to the acquired asset.

Changes in operating assets will be the same for either option of leasing or purchasing.

So this common costs can be ignored.

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Answer 2

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