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Silva's current premises are too small. Ruksana has found a new property that meets the business's needs. She has two options for acquiring the property.

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Silva's current premises are too small. Ruksana has found a new property that meets the business's needs. She has two options for acquiring the property. Option 1 Renting the property on a five-year lease. The rent is fixed at a cost of 1 000 per month Option 2 Buying the property on a 20 year variable rate mortgage. At current interest rates this will cost 1 800 per month 14 Evaluate whether Silva should lease the property (Option 1) or buy the property (Option 2). (12)

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