Question: Consider the following information, estimated using techniques taught in this subject, that you have collected as it relates to the acquisition of a new asset

Consider the following information, estimated using techniques taught in this subject, that you have collected as it relates to the acquisition of a new asset for your firm:

NPV(Lease vs Buy)

$200,000

Which of the following statements are consistent with the information above?

Group of answer choices

a More than one of the other statements are correct

b We should definitely acquire the asset and do so using borrowed funds rather than a lease.

c The firm will be better off financially if we acquire the asset irrespective of which of the two methods of financing considered above we use (relative to not acquiring it)

d The information above does not tell us whether we should acquire the asset, but it does tell us that if we were to acquire it, we would be better off leasing it rather than buying it using equity

e None of the other statements are correct

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