Ask Question
31 May, 16:40

In the chapter about owning versus leasing, one set of examples compares the cost of owning versus the cost of leasing for Southside Clinic, a not-for-profit organization. The net advantage to owning (versus leasing) for Southside amounted to $676. The difference between the two methods of financing:

+2
Answers (1)
  1. 31 May, 20:05
    0
    Answer: C) is so small that it might be disregarded and may be considered as a nearly neutral comparison between the two methods.

    Explanation:

    In this chapter reading from the textbook Health Care Finance, it is shown that the Present Value of owning for Southside Clinic is $46,595 and the Present Value cost of leasing is $47,271 which brings the difference to $676.

    This figure is considered so small it might be disregarded and may be considered as a nearly neutral comparison between the two methods because it is significantly smaller than the costs associated with either leasing or owning with it being less than 2% of both. It is therefore inconsequential.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “In the chapter about owning versus leasing, one set of examples compares the cost of owning versus the cost of leasing for Southside ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers