A company has the following alternatives on some real estate that it needs for its new plant. It can lease the facility for $10,000 a month for 15 years, or it can buy the facility now for $800,000. The company’s weighted average cost of capital is 12% and payments are made at the end of each month.
which would be cheaper for the company to buy or lease real estate? show your work.
what non-quantative factors should the management consider when making the decision?
If all you do is post your entire assignment, with no evidence of thinking on your part, nothing will happen since no one here will do your work for you.
But if you are specific about what you don't understand about the assignment or exactly what help you need, someone might be able to assist you. Ask specific questions!