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From the lessee viewpoint,the riskiness of the cash flows,with the possible exception of the residual value,is about the same as the riskiness of the lessee's


A) capital budgeting project cash flows.
B) debt cash flows.
C) pension fund cash flows.
D) sales.
E) equity cash flows.

F) A) and D)
G) D) and E)

Correct Answer

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The full amount of a lease payment is tax deductible provided the contract qualifies as a true lease under IRS guidelines.

A) True
B) False

Correct Answer

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