The manufacturer's or dealer's profit earned by the lessor is the same whether the residual value is guaranteed or unguaranteed.

Question

Quizplus · Accepted Answer

The lessor's profit is determined by the difference between the lease payments and the cost of the asset. The residual value is the estimated value of the asset at the end of the lease term. Whether the residual value is guaranteed or unguaranteed does not affect the lessor's profit.

The Manufacturer's or Dealer's Profit Earned by the Lessor Is