Lease vs Buy — OpenTuition Forums

MIMuhammad Irfan6y ago

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

John MoffatTutor6y ago#1

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

MIMuhammad Irfan6y ago#2

Great!

John MoffatTutor6y ago#3

You are welcome :-)

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