Why is the salvage value of an asset not included in the calculation of the present value of a lease?
A) A leased asset always has salvage value of $0
B) It is the same whether the asset is leased or purchased
C) The salvage value would not be considered a cash flow
D) The salvage value has to be estimated, and only cash flows whose values are known with certainty are included

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The Answer of Why is the salvage value of an asset not included in the calculation of the present value of a lease?
A) A leased asset always has salvage value of $0
B) It is the same whether the asset is leased or purchased
C) The salvage value would not be considered a cash flow
D) The salvage value has to be estimated, and only cash flows whose values are known with certainty are included

Why Is the Salvage Value of an Asset Not Included