Which of the following is potentially a benefit to the lessee if they lease as opposed to buy? ? Avoiding tax exhaustion ? Attracting lease customers that may not have been otherwise possible ? Exploiting a low cost of capital ? Potential future scrap proceeds
Dear sir, For option C, they have said exploiting a low cost of capital is a potential benefit to purchaser, not the lessee Can u pls explain how? Thank you
Buying involves borrowing a large amount of money at the start of the investment, and the lower the cost of money (i.e. cost of capital) is then the more attractive it is to buy.