Multiple Choice Questions: Lease vs Buy, Present Value, Rate of Return, Annuity
1) A company has an option to purchase equipment or $24,000 but can lease the identical equipment for $5,000 per month for the next 6 years. Its WACC is 7.656% and the equipment has a salvage value if $1000 an the end of 6 years. Which option should the company take? ? Lease ? Buy ? Indifference ? Not enough information to