The price or lease payment that the lessee sets as their bound is known as:

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The reservation payment that the lessee sets as their bound is known as L_MAX, which is the maximum lease payment that the lessee is willing to pay. Option D is the closest answer to this definition. Option A is incorrect because it refers to the tax shield, which is not relevant to the reservation payment. Option B is not a valid term, and Option C refers to the present value of operating savings, another calculation that is not relevant to the reservation payment.

The Price or Lease Payment That the Lessee Sets as Their