Abc corp is considering leasing an asset from xyz corp here


Question: ABC Corp. is considering leasing an asset from XYZ Corp. Here are the relevant facts:

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ABC ' s interest costs are 10% and XYZ ' s interest costs are 7%. Show that it will be advantageous both for ABC to lease the asset and for XYZ to purchase the asset in order to lease it out to ABC.

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Finance Basics: Abc corp is considering leasing an asset from xyz corp here
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