AAFM Exam CTEP Topic 3 Question 26 Discussion

Actual exam question for AAFM's CTEP exam

Question #: 26
Topic #: 3

[All CTEP Questions]

If the NPV of buy alternative is Positive and the NPV of incremental lease effect is negative then the correct decision is to___________.

ALease the Asset

BBuy the Asset

CNot use the Asset

DIf the sum of the two NPV's is positive, lease otherwise don't use the asset

Show Suggested Answer

Suggested Answer: C

by Rhea at Aug 06, 2023, 09:55 PM

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5 hours ago

But what if the sum of the two NPVs is positive? Shouldn't we lease the asset then?

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7 days ago

I think the correct decision is to buy the asset.

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