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 11000 Insurance - 10% Depreciation based on estimated economic life of 20 years with no salvage value. The opportunity cost of the amount used to purchase and renovate building is expected to be 12% Alternatively company can lease the building with an annual rent of OMR 100000 and incur cost of property taxes, insurance, and necessary repairs. You are required to suggest the best decision from the given option The Annual cost for Leasing the Building is OMR 171000 and annual cost for purchasing is OMR 181000. Therefore Leasing 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 171000 and annual cost for leasing is OMR 181000. Therefore Purchasing is the best option The Annual cost for Purchasing the Building is OMR 171000 and annual cost for leasing is OMR 131000. Therefore leasing is the best option