Assume you can lease an item you need for a project for GH¢950/day. To purchase the item, the cost is GH¢13,000 plus a daily operational cost of GH¢ 300/day. a. How long will it take for the purchase cost to be the same as the lease cost? b. Critically discuss the appropriate make or buy decisions to be made in case the item will be used for; i. At most 15 days ii. More 15 days but not exceeding 20 days iii. At least 20 days
Assume you can lease an item you need for a project for GH¢950/day. To purchase the item, the cost is GH¢13,000 plus a daily operational cost of GH¢ 300/day. a. How long will it take for the purchase cost to be the same as the lease cost? b. Critically discuss the appropriate make or buy decisions to be made in case the item will be used for; i. At most 15 days ii. More 15 days but not exceeding 20 days iii. At least 20 days
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Assume you can lease an item you need for a project for GH¢950/day. To purchase the item,
the cost is GH¢13,000 plus a daily operational cost of GH¢ 300/day.
a. How long will it take for the purchase cost to be the same as the lease cost?
b. Critically discuss the appropriate make or buy decisions to be made in case the item will be
used for;
i. At most 15 days
More 15 days but not exceeding 20 days
iii.
ii.
At least 20 days
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