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Which of these was an important difference between Florida and New Mexico?
Implicit Interest Rate
The interest rate that equates the present value of lease payments to the fair value of the leased asset, often used in lease agreements.
Capital Lease
A lease agreement that is considered a purchase by the lessee because of its terms, such as a bargain purchase option, which allow for the transfer of ownership over the asset's life.
Residual Value
The estimated value of an asset at the end of its useful life.
Capital Lease
A lease classified by lessees as an asset purchase, indicating that the lessee effectively has control over the asset during the lease term.
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