If expected ________ value is high for leased equipment, the cost of ownership to the lessee may be lower. In this case, the lessee should write a contract that will enable it to buy the fixed asset at the end of the lease term.

Question

Quizplus · Accepted Answer

The salvage value is the estimated residual value of an asset at the end of its useful life. If the salvage value is high, it means the asset retains significant value, making it beneficial for the lessee to purchase it at the end of the lease.

If Expected ________ Value Is High for Leased Equipment, the Cost