How Much Would It Cost to Lease a New Forklift

question 52

Multiple Choice

How much would it cost to lease a new forklift for 4 years if the lease cost (plus maintenance) is $650 per month?

• A) $31,000
• B) $31,100
• C) $31,200
• D) $31,300

---

Definitions:

Residual Income

A measure of a company's profitability, calculated by subtracting the cost of capital from operating profits.

Minimum Required Rate

The lowest rate of return that an investment must yield to be considered acceptable.

Residual Income

Income that continues to be generated after the initial effort has been expended, or in managerial accounting, the operating income that an investment center earns above the minimum required return on its operating assets.

Minimum Required Rate

The lowest return on investment that an investor is willing to accept, considering the risk involved.