What Is Does an Expense Stop Do in a Lease

question 8

Multiple Choice

What is does an expense stop do in a lease?

• A) Stops expenses from increasing
• B) Expenses above the stop are paid by the owner
• C) Expenses above the stop are paid by the tenant
• D) Expenses below the stop are paid for by the tenant

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Definitions:

Net Present Value

A calculation of the present value of cash inflows minus the present value of cash outflows over a period of time, used in capital budgeting.

Salvage Value

Salvage value is the estimated resale or scrap value of an asset at the end of its useful life.

Capital Budgeting

The process by which a business evaluates and selects long-term investments that are likely to add value to the company.

Highly Uncertain

Refers to situations or outcomes with a very high level of unpredictability or risk, often due to a lack of information or complex variables.