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Question 1 10 points Save Answer A sports team has to make a choice between leasing and buying a sailing boat. These are their alternatives:
Question 1 10 points Save Answer A sports team has to make a choice between leasing and buying a sailing boat. These are their alternatives: Alternative 1 Leasing): They can lease the boat for a period of ten years at an initial cost of AED 50,000 and make lease payments of AED 20,000 at the beginning of each year for 10 years. They can return the boat after paying the amount of AED 5,000 for additional maintenance costs at the end of 10 ycars Alternative 2 (Buying): The Company has the option of buying the boat now for AED 160,000 with an additional maintenance payments of AED 6,000 at the end of cach year for 10 years. The salvage value of the boat is estimated at AED S0,000 at the end of the 10-year life. Assume an interest rate of 10% and match the following questions with the closest correct answers from the given list A. Buy B-160,000-6000(PA,10%,10) + 50,000(PF, 10%,10) c.-50,000-20,000(P/A, 1090.10)-5,000(PT,10%,10) D-1 60,000-6000(AR 10%, 10)-50,000(PE 10%, 10) ELease F.-70,000-20,000(P/A, 1090,9)-5,000(PF,0%,10) c.-160,000-6000(P/A, 10%, 10)-50,000(PF, 10%, 10) H. .. 50,000-20,000(PA, 10%, 10) + 10,000(P/F,10%, 10) 1. -70,000 20,000(A/B 10%,9) + 5,000(P/F,10%,10) Present worth of cost of leasing- Present worth of cost of buying- | - :Should the company lcase or buy the boat
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