To determine the minimum lease payment the lessor may charge to cover their cost of capital, theNet Present Value (NPV) must be:
A) Between zero and one
B) Equal to zero
C) Greater than zero
D) Less than zero

Question

Quizplus · Accepted Answer

The Net Present Value (NPV) must be equal to zero to ensure that the lease payments cover the lessor's cost of capital, meaning the investment breaks even.

To Determine the Minimum Lease Payment the Lessor May Charge