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Lessor's Implicit Rate
The interest rate a lessor effectively charges a lessee in a lease agreement, often used to calculate the present value of minimum lease payments.
Incremental Borrowing Rate
The interest rate a company would have to pay if it borrows funds to finance a lease or purchase of an asset.
Discount
A reduction from the usual cost of something, often applied to incentivize purchase.
Minimum Lease Payments
The least amount over the leasing term that the lessee is obligated to pay, and which may include a residual value guarantee, taxes, fees, and interest expense.
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