The Residual Value Is a ______ Cash Flow,from the Point

question 33

Multiple Choice

The residual value is a ______ cash flow,from the point of view of the lessee.

• A) positive
• B) negative
• C) non-existent (since the lessee does not own the asset)
• D) positive or negative, depending on the tax rate

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Definitions:

Executed

A term applied to a contract in which all of the terms have been fully performed.

Implied-In-Law

A legal obligation arising not from explicit agreement but from a duty inherent in social or legal traditions.

Without Reserve

An auction term indicating that an item will be sold to the highest bidder regardless of the price, without any minimum bid restriction.

With Reserve

Pertains to an auction or sale condition where the item is sold only if it meets a minimum bid or criteria set by the seller.