Assume the initial financing provided by a lease is $100,000 and the present value of the cash outflow attributable to the lease is $90,000. Then the net value of the lease is:

Question

Quizplus · Accepted Answer

The net value of the lease is the difference between the initial financing provided and the present value of the cash outflow. In this case, the net value is $10,000 ($100,000 - $90,000), which is positive, so the correct answer is A.

Assume the Initial Financing Provided by a Lease Is $100,000