Complete the table ( lease or buy )? Situation lease or buy decision Aadi owns a

Question

Complete the table (lease or buy)?

Situation lease or buy decision Aadi owns a smal-sized printing business. During the December Holiday season, the demand increased as well. Now Aadi has constant demand for hardcover perfect binding. Irrespective of whether Aadi buys the machine or leases it, he needs to service the machine. Should Aadi purchase binding machine or lease it? lease or buy? Win Jet Corp. is a private jet charter company. Due to increased demand during the summer, it needs to add three more jets to its fleet. Is Win Jet likely to lease or buy? lease or buy?

Explanation / Answer

1)The aadi should take the machine on lease,as the business of aadi is a printing business and use of binding machine will be higher only in month of december .so looking at aadi business and its use ,aadi should lease the machine.

2)Win jet corp shall buy a machine ,as jet charter is a business of a company so irrespective of demand is high or low in any month ,the company will have a continuous use of such asset.

so company shall purchase the asset.

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