Evaluate, using discounting techniques, which option, lease or buy, is most financially beneficial in the scenario given in Table. You should consider the discount rate to be 10 per cent and the period of consideration to be fiveyears.

Buy Lease Purchase/lease cost Annual operating cost Maintenance cost 5000010000 per year 24000 4000 per year per year 2000 Maintained by per year leasing co. Salvage value at the end of 20000 not applicable five years