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A Financial Lease Is Also Called a Full-Payout Lease Because

Question 49

Multiple Choice

A financial lease is also called a full-payout lease because:


A) lessee agrees to pay the full amount of the lease up front.
B) lessor agrees to pay out the lease if the lessee defaults.
C) lessee pays for full cost of the asset in present value terms.
D) payout of the lease is guaranteed by insurance.

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