Lease vs Buy

This topic has 3 replies, 2 voices, and was last updated 6 years ago by John Moffat.

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January 14, 2020 at 6:04 am #558566
ikmughal28
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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
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As always when calculating IRR’s you can use any two interest rates.
January 14, 2020 at 12:08 pm #558645
ikmughal28
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Great!
January 15, 2020 at 3:06 pm #558760
John Moffat
Keymaster
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You are welcome 🙂
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