Demitrius Runs a Greek Restaurant and Is Currently Considering Leasing

question 54

Multiple Choice

Demitrius runs a Greek restaurant and is currently considering leasing or purchasing some updated equipment.What statement is correct?

• A)Because the equipment he is buying will become outdated in two years, leasing would be a better option than purchasing.
• B)Because the restaurant is new and he wants to protect his cash flow, purchasing would be better since purchasing costs less than leasing.
• C)If the equipment is leased, the restaurant's lines of credit will be increased.
• D)Leasing is always more expensive than purchasing over the term of the lease.

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