Question

22. Which point should you
keep in mind while taking
decision for purchase asset or
taken it on lease ?​

Answer 1

Answer:

lease or buy equipment? The answer depends on your situation. Leasing equipment can be a good option for business owners who have limited capital or who need equipment that must be upgraded every few years, while purchasing equipment can be a better option for established businesses or for equipment that has a long usable life.

Answer 2

The point to be considered is lease length and monthly payments.

• Leasing has benefit of initial financial investment being lower than if bought. The major advantage of purchasing is that the person will pay less in the long term than if rented, plus will profit from any increase in asset price.
• Choosing between purchasing and leasing is a difficult decision. The lease duration and monthly payments, must be well calculated in advance.
• Buying entails larger monthly payments, but, the person owns an asset. Whereas, a lease, provides cheaper monthly payments and allows one to procure an asset they would not otherwise be able to afford.