Examlex
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Implicit Interest Rate
The interest rate in a lease or loan that is not explicitly stated but can be calculated by comparing the present value of the lease payments or loan repayments to the original amount financed.
Present Value Factors
Multipliers used in calculating the present value of a future amount of money or cash flows, considering a specific interest rate over a period of time.
Capital Lease
An accounting treatment for leases where the lessee records the leased property as if it was purchased, showing both an asset and a liability on the balance sheet for the lease obligation.
Residual Value
The projected amount an asset is expected to yield when sold after its period of usefulness has ended.
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