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Lease vs Buy

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Lease vs Buy

Viewing 4 posts - 1 through 4 (of 4 total)
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    Posts
  • January 14, 2020 at 6:04 am #558566
    ikmughal28
    Participant
    • Topics: 66
    • Replies: 62
    • ☆☆

    Hi

    In one of your revision videos, you said that in order to calculate the effective cost of leasing, we have to calculate the IRR so my question is that do we have to take any two discount factors for IRR or one of the discount factor must have to be the cost of borrowing the money to buy the asset?

    Thanks

    January 14, 2020 at 11:49 am #558633
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54805
    • ☆☆☆☆☆

    As always when calculating IRR’s you can use any two interest rates.

    January 14, 2020 at 12:08 pm #558645
    ikmughal28
    Participant
    • Topics: 66
    • Replies: 62
    • ☆☆

    Great!

    January 15, 2020 at 3:06 pm #558760
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54805
    • ☆☆☆☆☆

    You are welcome 🙂

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