Pita Pub Leased a Specialty Machine for a Five-Year Non-Cancelable

question 160

Multiple Choice

Pita Pub leased a specialty machine for a five-year non-cancelable term. At the end of the five-year term, Pita Pub has four consecutive one-year renewal options. A replacement machine can be acquired, but due to an expensive installation process and Pita Pub's lease term for its mall location, Pita Pub expects to lease the machine for seven years. What is the lease term?

• A) 5 years
• B) 6 years
• C) 7 years
• D) 9 years

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