Multiple Choice
Why is the salvage value of an asset not included in the calculation of the present value of a lease?
A) A leased asset always has salvage value of $0
B) It is the same whether the asset is leased or purchased
C) The salvage value would not be considered a cash flow
D) The salvage value has to be estimated, and only cash flows whose values are known with certainty are included
Correct Answer:
Verified
Correct Answer:
Verified
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