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Sir, when they say the new machine leads to savings in running costs of 2000, wouldn’t that be relevant and there would be a additional tax for both lease and buy?
By all means bring in the 2,000 saving (you would not lose any marks), but it would not affect the decision as to whether to lease or buy because the saving (and the tax effect) will be the same in both cases. It just means a bit of extra work 🙂
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If the question were to say maintenance cost is undertaken by the lessor at no additional cost, would we count that as a saving under lease?
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*I mean why would we not count that as a saving under lease?
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