Example 59. A company may obtain a particular machine either by leasing it for 5 years at an annual rent of Rs 800 or by purchasing the machine for Rs 3200. (i) Which alternative is preferable if the company can invest money at 6% per annum? (ii) What would be your decision, if it can invest at 8% per annum.
Example 59. A company may obtain a particular machine either by leasing it for 5 years at an annual rent of Rs 800 or by purchasing the machine for Rs 3200. (i) Which alternative is preferable if the company can invest money at 6% per annum? (ii) What would be your decision, if it can invest at 8% per annum.
Chapter6: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 8RE: Suppose an investment account is opened with aninitial deposit of 10,500 earning 6.25...
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Transcribed Image Text:Example 59. A company may obtain a particular machine either by leasing it
for 5 years at an annual rent of Rs 800 or by purchasing the machine for Rs 3200.
(i) Which alternative is preferable if the company can invest money at 6% per
annum?
(ii) What would be your decision, if it can invest at 8% per annum.
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