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Implicit Interest Rate
The interest rate that equates the present value of lease payments to the fair value of the leased asset, often used in lease agreements.
Capital Lease
A lease agreement that is considered a purchase by the lessee because of its terms, such as a bargain purchase option, which allow for the transfer of ownership over the asset's life.
Residual Value
The estimated value of an asset at the end of its useful life.
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Q49: Which of the following languages is used