Discount factorForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Discount factorThis topic has 1 reply, 2 voices, and was last updated 2 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts November 6, 2022 at 6:47 pm #670789 azashParticipantTopics: 2Replies: 3☆HI Sirin a Lease or buy question ;Option 1. The vehicle could be bought using a bank loan with an after tax cost of borrowing of 4% paOption 2. It could be leased for a period of 4 years. xxx The company’s after tax weighted average cost of capital is 8%.in this case what discount factor should be used? 4% or 8%. and why ? November 7, 2022 at 9:13 am #670826 John MoffatKeymasterTopics: 57Replies: 54458☆☆☆☆☆If deciding which is best (i.e. leasing or buying) then we should discount at 4%.I explain the reasons for this in my free lectures on lease v buy.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In