Considering a lease or a purchase of equipment


Question: A textile company is considering a lease or a purchase of equipment. NPV of the cost of leasing is $52,000, whereas NPV of the cost of buying with equity is $59,000. We can conclude that the company should... a. either purchase or lease, because it does not change anything b. purchase, because NAL is negative c. purchase, because NAL is positive d. lease, because NAL is positive e. lease, because NAL is negative

 

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Accounting Basics: Considering a lease or a purchase of equipment
Reference No:- TGS03426034

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