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Question

Lease financing enables the lessee to acquire the asset with a ________ investment.

A
Higher
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B
Medium
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C
Lower
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D
Both a and b
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Solution

The correct option is A Lower
Lease financing in other words is renting of an asset for some specific period. The lessee pays a fixed periodic amount called lease rental to the lessor for the use of the asset. This enables the lessee to acquire the assets with a lower investment.

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