Omega Leased a Machine for a Ten-Year Non-Cancelable Term

question 211

Multiple Choice

Omega leased a machine for a ten-year non-cancelable term. At the end of the ten-year term, Omega has five consecutive one-year renewal options. A replacement machine can be acquired at the end of the term for the leased machine, but due to an expensive installation process and Omega's lease term for its store, Omega expects to lease the machine for 12 years. What is the lease term?

• A) 10 years
• B) 11 years
• C) 12 years
• D) 15 years

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Definitions:

Growth Rate

The rate at which a living organism or part of an organism increases in size.

Natural Resources

Materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain or ecological functions.

Biotic Potential

The maximum reproductive capacity of an organism under optimum environmental conditions.

Environmental Resistance

The sum of environmental factors that tend to restrict the biotic potential of an organism or population, affecting its growth and survival.