The figure above shows the U.S. market for airplanes, where SUS is the domestic supply curve and DUS is the domestic demand curve. The United States trades freely with the rest of the world. The world price of an airplane is $150 million.
-In the figure above,U.S.consumers buy ________ airplanes per year at ________ million per airplane.
Definitions:
Implicit Rate
The interest rate inherently included in the lease payments, reflecting the lessor's cost of financing.
Incremental Borrowing Rate
The interest rate a company would have to pay if it borrows funds, used as a benchmark in lease accounting to determine the present value of lease payments.
Net Income
The total earnings or profit of a company after all expenses and taxes have been deducted from revenue.
GAAP
Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting used in any given jurisdiction, primarily in the United States.
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