In an Operating Lease,which Party Is Typically Responsible for Maintenance

question 37

Multiple Choice

In an operating lease,which party is typically responsible for maintenance costs on the asset?

• A) the lessor
• B) the lessee
• C) the third party financing the asset
• D) all of the above

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Definitions:

Time Value

The concept in finance that money available now is worth more than the same amount in the future due to its potential earning capacity.

Discounted Cash Flow

Discounted cash flow is a valuation method used to estimate the attractiveness of an investment opportunity based on its expected future cash flows.

Annual Rate of Return

The ratio of gain or loss on an investment across a span of one year, expressed as a percentage.

Incremental Analysis

An examination of the additional benefits and costs of certain business decisions, focusing on the changes from the current state.