In Which One of These Cases Would Both the Lessor

In which one of these cases would both the lessor and the lessee be indifferent to the lease?

A) When the lessor's tax rate is lower than the lessee's tax rate.
B) When the lessor's tax rate is equal to the lessee's tax rate.
C) When the lessor's tax rate is higher than the lessee's tax rate.
D) Never,because a lease cannot be beneficial to both parties.
E) Since leases always have a zero NPV,both parties are automatically indifferent to the lease.

Correct Answer:

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