A way to analyze whether debt or lease financing would be preferable is to:

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Gianni Masaracchia · Accepted Answer

Compare the net present values under each alternative, using the after-tax cost of borrowing as the discount rate

Gianni Masaracchia · Answer

Compare the net present values under each alternative, using the cost of capital as the discount rate

Gianni Masaracchia · Answer

Compare the payback periods for each alternative

Gianni Masaracchia · Answer

Compare the effective interest costs involved for each alternative

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