A Latent Variable Is a Variable That Cannot Actually Be

question 15

True/False

A latent variable is a variable that cannot actually be measured but can only be approximated with actual measures.

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Definitions:

NPV

Net Present Value, a financial metric that evaluates the profitability of an investment by calculating the difference between the present value of cash inflows and outflows.

Operating Lease

An agreement permitting the utilization of an asset without transferring ownership rights to the user.

Operating Leases

Lease agreements that allow for the use of an asset but do not convey rights of ownership, typically involving shorter-term leases with lower payments.

Financial Leases

Long-term leases that are effectively a method of borrowing to acquire equipment or vehicles, with lessee payments covering the asset's full value plus interest over the lease term.