When will a lower lease payment possibly arise?

Name: When will a lower lease payment possibly arise?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A lower lease payment can possibly arise when there is a lower purchase cost for the asset. This is because the lease payment is influenced by the purchase cost of the asset. Lower purchase cost means lower lease payments. Factors such as tax rates for lessee or lessor or CCA tax shield may also influence the lease payment but are not directly related to the purchase cost of the asset.

When Will a Lower Lease Payment Possibly Arise