If Expected ________ Value Is High for Leased Equipment, the Cost

question 27

Multiple Choice

If expected ________ value is high for leased equipment, the cost of ownership to the lessee may be lower. In this case, the lessee should write a contract that will enable it to buy the fixed asset at the end of the lease term.

• A) purchase
• B) salvage
• C) terminal
• D) original
• E) acquisition

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Definitions:

Sunny Days

Days characterized by sunshine, with minimal to no cloud cover, often associated with good weather.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Resources

Assets or inputs available for use in the production of goods or services, including natural, human, and capital resources.

Scarce

Describes a condition where resources, goods, or capabilities are limited in availability relative to the demand for them.