Mathematics for FinanceMTP Nov 20Question 1569 of 422
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A company is considering proposal of purchasing a machine either by making full payment of $4,000$ or by leasing it for $4$ years at an annual rent of $1250$. Which course of action is preferable if the company can borrow money at $14\%$ per annum? [Given: $(1.14)^4 = 1.6870$ ]

Options

ALeasing preferable
BLeasing is not preferable
CCan't say
DNone of these
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Correct Answer

Option bLeasing is not preferable

All Options:

  • ALeasing preferable
  • BLeasing is not preferable
  • CCan't say
  • DNone of these

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