With the rapid expansion of AKE businessAdam is contemplating on the idea of opening one more branch at strategic location in a new housing areaThe options available are either to rent the premise or to buy themFor the rental optionit will cost AKE about RM3,500amonth for a single unitOn the other handthe price of a single shop lot is RM450,000The deposit required is RM50,000 for a unit while the balance will be financed through bank loan for 20 years with an estimated monthly loan instalment of RM2,800Critically assess these two options and explain to Adamn how each of the options will be impacting the operational costs of AKE

Adam is undecided whether to buy a higher volume of cleaning inventories for a better price from the suppliers or keep its existing practice of buying as-when-needed basisThe former will require additional space to store the inventories while the latter is sufficient with the existing facilityAnalyze and explain to Adam what benefits and shortcomings of these two options