Question
Jane is asked to evaluate whether it would be better to lease an asset or to borrow money from the bank to buy the asset.
Jane is asked to evaluate whether it would be better to lease an asset or to borrow money from the bank to buy the asset. The NPV from buying the asset is calculated to be $30,000. The NPV for the lease versus borrow to buy analysis is calculated to be $500. Which of the following statements best describe the lease versus buy decision for this investment?
Group of answer choices
Jane should lease the asset because her company would be better off by $30,000 compared to borrowing to buy the asset.
Jane should lease the asset as long as the NPV for the lease versus borrow to buy analysis is positive.
As the asset has positive NPV, Jane indifferent between leasing the asset or borrowing to buy it.
More than one of the other statements is correct.
None of the other statements is correct.
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