Evaluate Lease Vs Buying And Advise Management Of Abc Inc

Avatar Image
yerosan | 15:59 Sat 01st Aug 2020 | Business & Finance
2 Answers
3. ABC Inc. is contemplating on two options of either buying or leasing of an Equipment that has a negotiated price of Br20 M. the equipment is expected to last five years in use and be salvageable for Br2 m at the end of its economic life. The depreciation policy of the firm is Straight line and applicable yearly and consistently. When the equipment is Leased, the lessor expects br7.5 m/year of rent. ABC Inc. is in 30% tax bracket, and capable of borrowing at 16%.

Instruction: Evaluate lease vs buying and advise management of ABC Inc. which one of the two is worth considering. (15pts)


1 to 2 of 2rss feed

Best Answer

No best answer has yet been selected by yerosan. Once a best answer has been selected, it will be shown here.

For more on marking an answer as the "Best Answer", please visit our FAQ.
We are real people on here and a please and thank you doesn't come amiss
Work out cost for renting against cost of owning.

1 to 2 of 2rss feed

Do you know the answer?

Evaluate Lease Vs Buying And Advise Management Of Abc Inc

Answer Question >>

Related Questions

Sorry, we can't find any related questions. Try using the search bar at the top of the page to search for some keywords, or choose a topic and submit your own question.