Question
Julie is asked to evaluate whether it would be better to lease an asset or to borrow money from the bank to buy the asset,
Julie is asked to evaluate whether it would be better to lease an asset or to borrow money from the bank to buy the asset, for a potential project. The NPV from the project is calculated to be $-2,000. The NPV for the lease versus borrow to buy analysis is calculated to be $1500. Which of the following statements best describe the decision that should be made? Group of answer choices
Julie should not invest the project at all.
None of the other statements is correct.
More than one of the other statements is correct.
Julie should invest the project and borrow to buy the asset as this will increase her wealth.
Julie should invest the project and lease the asset as long as the lease payment is less than $2,000.
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