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Pixz International is a multinational computer technology company based in the United States. It had outsourced the production of its microprocessors to China. Now Pixz International is moving its microprocessor production back to the United States. Pixz International is currently engaged in __________.
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.
Present Value Factors
Multipliers used to calculate the present value of a future amount of money or stream of cash flows, given a specific discount rate.
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