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Discuss the relationship between external environmental characteristics and uncertainty.
Interest Rate Implicit
The interest rate in a lease that, when applied to the lease payments, discounts them to equal the fair value of the leased asset.
Direct Financing Lease
A lease agreement where the lessor purchases an asset and leases it out, effectively providing financing to the lessee without transferring ownership.
Net Investment
The total amount spent on buying fixed assets, minus any sales of these assets.
Dealer Profit
The difference between the price at which a dealer sells a good and the cost incurred to buy or produce that good, essentially the dealer's earning from the transaction.
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