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In computing the present value of the lease payments, the lessee should a. use both its incremental borrowing rate and the implicit rate of the lessor, assuming that the implicit rate is less. b. use the implicit rate of the lessor, assuming that the implicit rate is known to the lessee. c. use its incremental borrowing rate in all cases. d. use the implicit rate if it is less than then lessee’s incremental borrowing rate.

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