Assume you can lease an item you need for a project for GH¢950/day. To purchase the item, the cost is GH¢13,000 plus a daily operational cost of GH¢ 300/day. a. How long will it take for the purchase cost to be the same as the lease cost? Critically discuss the appropriate make or buy decisions to be made in case the item will be used for; i. ii. iii. At most 15 days More 15 days but not exceeding 20 days At least 20 days

Assume you can lease an item you need for a project for GH¢950/day. To purchase the item, the cost is GH¢13,000 plus a daily operational cost of GH¢ 300/day. a. How long will it take for the purchase cost to be the same as the lease cost? Critically discuss the appropriate make or buy decisions to be made in case the item will be used for; i. ii. iii. At most 15 days More 15 days but not exceeding 20 days At least 20 days

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 9P

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