A company is considering proposal of purchasing a machine either by making full payment of ₹ 4000 or by leasing it for four years at an annual rate…
CA Foundation · Quantitative Aptitude · MTP · June 2024
A company is considering proposal of purchasing a machine either by making full payment of ₹ 4000 or by leasing it for four years at an annual rate of ₹ 1250. Which course of action is preferable, if the company can borrow money at 14% compounded annually: [Given: (1.14) 4 = 1.68896]
Suggested Answer and Working Notes:
Correct Answer: Option (A)
A. Leasing is preferable
Topics: Part-A: Business Mathematics
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