16-Qatar Airways and Air Lease Corporation announced long-term lease agreements for 14 Aircraft. The lease agreements cover three new Boeing 737-800s, seven new Boeing 737-8MAXs, and one new Boeing 787-9.

Which of the following is an advantage of leasing?

No ownership of the assets

Capital expenditure can be reduced

Capital expenditure can be increased

Lease expenses might increase the annual profits

LetGrade LLC is planning to purchase a building for OMR 500,000. Acquisition cost of building includes OMR 70,000 for land area and company will incur a renovation cost of OMR 50,000. The estimated annual cost of the building will be as follows: Repairs and maintenance - OMR 15000 Property tax - OMR 18000 Insurance - 10% Depreciation based on estimated economic life of 20 years with salvage value of OMR 20000 The opportunity cost of the amount used to purchase and renovate building is expected to be 10% Alternatively company can lease the building with an annual rent of OMR 95000 and incur cost of insurance, and necessary repairs. The property tax will be paid by lessor. You are required to suggest the best decision from the given options. The Annual cost for Purchasing the Building is OMR 166000 and annual cost for leasing is OMR 165000, Therefore leasing is the best option. The Annual cost for Leasing the Building is OMR 166000 and annual cost for purchasing is OMR 165000. Therefore Purchasing is the best option. O Purchasing and Leasing are not good option based on given information The Annual cost for Purchasing the Building is OMR 165000 and annual cost for leasing is OMR 165000. Therefore both are good options