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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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

10 days ago

Got it, thanks for clarifying!

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Hannah

13 days ago

No, the correct decision is still to buy the asset if the NPV of buying is positive.

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Aleta

23 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

17 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

18 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

19 days ago

I agree, buying the asset would be the best decision in that scenario.

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Mohammad

22 days ago

C) Not use the Asset

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Shannan

27 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

19 days ago

Option B is the way to go!

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Nobuko

20 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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