First question:
a. Choose to lease or buy based on other criteria
Because present value analysis proved that both are equal.
Second question:
Put payoff = ($42 - $28) × 2 = $28
Put premium paid = $8
Loss on stock purchased = $48 - $28 = $20
Net profit/ (loss) = $28 - $4 - $20 = $0
Answer is a. $0
Please rate.
If a lease analysis shows exactly the same present value as an equivalent loan, the lessee...
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