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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___________.

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Suggested Answer: C

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

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Mattie
1 months ago
Wait, wait, wait... If the NPV of buying is positive and the NPV of leasing is negative, then the only logical choice is to buy the asset. Option B is the correct answer, unless you're planning on living in a cardboard box.
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Douglass
11 days ago
Got it, thanks for clarifying!
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Hannah
14 days ago
No, the correct decision is still to buy the asset if the NPV of buying is positive.
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Aleta
24 days ago
But what if the sum of the two NPVs is positive? Would that change the decision?
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Earnestine
2 months ago
Alright, let's do this. If the NPV of buying is positive and the NPV of leasing is negative, then it's time to break out the checkbook and make the purchase. Option B is the way to go, unless you want to end up leasing a paperclip or something.
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Alesia
2 months ago
Okay, let's see here. If the NPV of buying is positive and the NPV of leasing is negative, then the best decision is to buy the asset. Option B is the correct answer, no question about it.
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An
18 days ago
Buying the asset is the way to go when the NPV of buying is positive and the NPV of leasing is negative.
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Clement
19 days ago
Yes, option B is the correct answer since the NPV of buying is positive and the NPV of leasing is negative.
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Gerry
20 days ago
I agree, buying the asset would be the best decision in that scenario.
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Mohammad
23 days ago
C) Not use the Asset
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Shannan
28 days ago
B) Buy the Asset
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Providencia
1 months ago
A) Lease the Asset
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Lynda
2 months ago
Hmm, let me think... If the NPV of buying is positive and the NPV of leasing is negative, then it's a no-brainer. Lease the asset? Yeah, right, that doesn't make any sense. Option B is the way to go!
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Altha
20 days ago
Option B is the way to go!
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Nobuko
21 days ago
If the NPV of buying is positive and the NPV of leasing is negative, then it's a no-brainer.
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Rebecka
1 months ago
B) Buy the Asset
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Annamae
1 months ago
A) Lease the Asset
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Kattie
2 months ago
B) Buy the Asset
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Victor
2 months ago
A) Lease the Asset
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Alaine
2 months ago
If the NPV of buying is positive and the NPV of leasing is negative, then the obvious choice is to buy the asset. Option B is the correct answer here.
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Keena
1 months ago
I agree, option B is the right choice in this scenario.
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Ivan
2 months ago
I think the correct decision is to buy the asset.
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Stanford
3 months ago
That's a good point. If the sum is positive, then leasing might be a better option.
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Alyce
3 months ago
But what if the sum of the two NPVs is positive? Shouldn't we lease the asset then?
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Stanford
3 months ago
I think the correct decision is to buy the asset.
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