A sample lecture on ACCA Paper FM (Financial Management) on the topic of (Lease or Buy Question Practice) conducted by Subject Specialist, Ms Annie Tan. Wish to find out more about ACCA Qualification? Contact us.
The focus of this video is on the lease versus buy decision for new technology. The evaluation process involves considering financing terms, calculating net present value, and providing investment advice. The analysis takes into account costs, benefits, and a comparison of leasing and buying options. Adjustments for timing, tax savings, and license fees are made in the total present value calculation. A positive net present value signifies a financially sound decision. The concept of equivalent annual cost in investment appraisal is also explored.
