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John Moffat.
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Varun.J.Thakkar
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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 proceedsDear 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
John Moffat
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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.
Varun.J.Thakkar
John MoffatViewing 2 posts - 1 through 2 (of 2 total)
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