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John Moffat.
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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Discount rate
Sir in lease v buy questions do we specifically use the after-tax cost of borrowing or do we use the WACC like all the NPV calculations?
When choosing between leasing or buying we discount at the cost of borrowing, as I explain in my free lectures on this.
Okay, thank you 🙂
You are welcome 🙂