Question: Question One a). Describe the four basic steps involved in the Lease versus Purchase decision process. How are capital budgeting methods applied in this process.

Question One

a). Describe the four basic steps involved in the Lease versus Purchase decision process. How are capital budgeting methods applied in this process. [10 marks]

b). List and discuss the commonly cited advantages and disadvantages that should be considered when deciding whether to lease or purchase. [10 marks]

c). Explain one type of error that can be made with Internal Rate of Return IRR that are not made with Net Present Value NPV? [10 marks]

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