Assume You Have Analyzed the Lease-Or-Purchase Issue for a Company

Multiple Choice

Assume you have analyzed the lease-or-purchase issue for a company. The present value of the cost of leasing is lower than the present value of purchasing the asset. In this situation, what recommendation would you give the company?

A) You need more information to settle the issue
B) Lease the asset
C) It doesn't matter whether they lease or purchase - the operating costs are the same
D) Purchase the asset