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AAFM CTEP Exam - Topic 3 Question 26 Discussion

If the NPV of buy alternative is Positive and the NPV of incremental lease effect is negative then the correct decision is to___________.
C) Not use the Asset
A) Lease the Asset
B) Buy the Asset
D) If the sum of the two NPV's is positive, lease otherwise don't use the asset

AAFM CTEP Exam - 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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Stephen
7 months ago
I don't know, leasing can sometimes be more flexible.
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Lorita
7 months ago
Buying is the right choice, no doubt!
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An
7 months ago
Wait, are we sure about that? What if the lease has hidden costs?
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Chantay
7 months ago
I agree, buying seems like the way to go here.
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Scot
8 months ago
Definitely buy the asset! Positive NPV means it's a good investment.
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Lizette
8 months ago
I’m not completely confident, but I feel like option D could be tricky. It mentions the sum of NPV's, which we didn't really cover in depth.
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Lizbeth
8 months ago
I practiced a similar question where the decision was based on comparing NPVs. If buying is positive and leasing is negative, I think buying is the way to go.
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Alida
8 months ago
I'm a bit unsure, but I remember something about negative NPV for leasing suggesting it's not a good option. Does that mean we should definitely buy?
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Matilda
8 months ago
I think if the NPV of buying is positive, that usually means it's a good investment, right? So maybe we should buy the asset?
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Boris
8 months ago
Okay, let's see. The fastest option seems to be the NVMe SSD, but I'm not sure if the laptop can support that connection.
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Kallie
8 months ago
I think this question is asking about the recommended maximum number of site servers that should report to a single name server (NS). I'll need to think through the factors that might impact this, like performance, reliability, and scalability.
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Kent
9 months ago
Wait, I'm not sure I follow. Does "true" mean the statement is accurate, or that applications can be auto scaled in seconds? I want to make sure I'm interpreting this correctly.
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Mattie
1 year 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
1 year ago
Got it, thanks for clarifying!
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Hannah
1 year ago
No, the correct decision is still to buy the asset if the NPV of buying is positive.
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Aleta
1 year ago
But what if the sum of the two NPVs is positive? Would that change the decision?
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Earnestine
1 year 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
1 year 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
1 year 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
1 year 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
1 year ago
I agree, buying the asset would be the best decision in that scenario.
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Mohammad
1 year ago
C) Not use the Asset
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Shannan
1 year ago
B) Buy the Asset
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Providencia
1 year ago
A) Lease the Asset
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Lynda
1 year 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
1 year ago
Option B is the way to go!
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Nobuko
1 year 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 year ago
B) Buy the Asset
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Annamae
1 year ago
A) Lease the Asset
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Kattie
1 year ago
B) Buy the Asset
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Victor
1 year ago
A) Lease the Asset
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Alaine
1 year 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 year ago
I agree, option B is the right choice in this scenario.
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Ivan
1 year ago
I think the correct decision is to buy the asset.
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Stanford
1 year ago
That's a good point. If the sum is positive, then leasing might be a better option.
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Alyce
1 year ago
But what if the sum of the two NPVs is positive? Shouldn't we lease the asset then?
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Stanford
1 year ago
I think the correct decision is to buy the asset.
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