Examlex
This approach to determining salesforce size cannot normally be used for a new salesforce because it requires historical data or accurate management judgments:
Present Value
Present Value is the current worth of a future sum of money or stream of cash flows given a specified rate of return, reflecting the time value of money.
Capital Lease
A lease agreement that is treated like an asset purchase for accounting purposes, where the lessee obtains the benefits and risks of ownership.
Bargain Purchase Option
An option in a lease agreement that allows the lessee to purchase the leased item at a price significantly lower than its expected fair market value.
Economic Life
The expected period of time during which an asset is useful to the average owner, or until the asset can no longer be economically used.
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