Examlex
Match the tests with the correct method used for each.
-RPR test
Present Value
The current value of a future sum of money or stream of cash flows given a specified rate of return, often used in discounting cash flows.
Annuity Due
An annuity where payments are made at the beginning of each period instead of the end.
Bargain Purchase Option
An option given to the lessee to purchase the leased asset at the end of the lease term at a price significantly lower than the expected fair market value.
Future Rents
Future rents refer to the payments that are expected to be received in the future for the use of an asset, typically real estate.
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