1. The term "net advantage to leasing" is defined as:

a. The after-tax cash flows received from a lessee.

b. The NPV of the decision to lease an asset instead of buying it.

c. The future value of the incremental cash flows received from a lessee.

d. The after-tax benefit to a lessor of an asset.

e. The incremental sales by a manufacturer based on its leasing operations.

2. A project which has a payback period longer than its life also has a positive NPV.

True

False

3. In most industries, planning beyond the period of one year is not very useful.

True

False