CA CPT Model Test Paper 6 with solutions for online practice

Question : 180 of 200

Marks: +1, -0

A company may obtain a machine either by leasing it for 5 years, (useful life) at an annual rent of Rs. 2,000 or by purchasing it for Rs, 8,100. If the company can borrow money at 10% p.a., which alternative is preferable?