The riskiness of the cash flows to the lessee with the possi

The riskiness of the cash flows to the lessee, with the possible exception of the residual value, is roughly the same as the riskiness of the lessee’s

A equity cash flows.

Solution


Correct option is > C. debt cash flows.

It riskiness of the cash flows to lessee is replication of debt cash flows with possible exceptions in residual value

The riskiness of the cash flows to the lessee, with the possible exception of the residual value, is roughly the same as the riskiness of the lessee’s A equity

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