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:

Fraudulent Misrepresentation

A false statement made knowingly or recklessly with the intent to deceive, leading another to enter into a contract.

Innocent

Relates to the state of not being guilty of a crime or other wrong act.

Negligent

The failure to take reasonable care to avoid causing injury or loss to another person, leading to liability for any harm resulted from such careless actions.

Deceit

This tort involves the fraudulent and intentional misleading of another person causing injury.