Cancellable short-term operating leases are an attractive option to a lessee because:

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Cancellable short-term operating leases provide the lessee with the flexibility to only use the asset for the time period they require, which can be significantly less than the asset's economic life. This is especially attractive when the company is unsure of its long-term needs or if they anticipate the asset becoming obsolete due to technological change. Additionally, if the project is discontinued or the asset is no longer needed, the lessee can cancel the lease without the financial burden of owning the asset.

Cancellable Short-Term Operating Leases Are an Attractive Option to a Lessee