Consider the production possibilities frontier in the figure shown.As more and more cigars are produced the opportunity cost of producing more cigars:
Definitions:
Future Minimum Lease Payments
The total amount of payments that the lessee is expected to make under the lease agreement over its term.
Direct Financing Lease
A leasing arrangement in which the lessor purchases an asset for the lessee and rents it out, with the lease payments designed to cover the original cost plus a profit margin.
Unearned Interest: Leases
Interest that has been collected on a lease agreement before it has been earned, usually according to the payment schedule.
Residual Value
The anticipated revenue from selling an asset once it has reached the end of its serviceable life.
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