While solving Leasing Sum,whether we can consider different discount for leasing and borrowing.
For eg- If Co borrow money @ 15℅ for purchasing a asset and cost of capital is 13℅.
Can we use 15℅ for purchasing option and 13℅ for leasing option in a same sum.
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Leasing
Replies (2)
cost of Capital is most appropriate discounting rate
discounting rate should be same for both options
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