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Which type of activity is most likely to cause an oxygen deficit?
Bargain Purchase Option
An option in a lease agreement that allows the lessee to purchase the leased asset at the end of the lease term at a price significantly below its expected fair market value.
Executory Costs
Executory costs are expenses associated with fulfilling the terms of a contract, typically not included in the initial acquisition cost of an asset.
Guaranteed Residual Value
The minimum future value of an asset as guaranteed by a third party or agreement upon the asset's lease end.
Initial Direct Costs
Initial Direct Costs are expenses directly associated with negotiating and arranging a lease that are not included in the net investment in the lease.
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