1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lbvjy [14]
3 years ago
9

A lease option is a clause that grants an option holder the right, but not the obligation, to renew the lease, cancel the agreem

ent, relocate within a property, or even expand to adjacent space. The existence of these options in a leasing agreement:
A. Reduces the expected present value of lease cash flows to the owner
B. Increases the expected present value of lease cash flows to the owner
C. Does not impact the expected present value of lease cash flows to the owner
D. Causes the expected present value of lease cash flows to equal zero
Business
1 answer:
kow [346]3 years ago
8 0

Answer:

B. Increases the expected present value of lease cash flows to the owner

Explanation:

A lease option gives a right but not the obligation to the renter of the property to buy the said property at today's current market price upon the expiry of lease term.

Lease option is similar to an option contract, the difference being, here instead of securities, leased property serves as the underlying asset and instead of option premium, the renter pays a premium each year in addition to the rental charges.

Lease cash flows refer to the present value of future cash flows which the lessor/owner receives in the form of lease rentals plus the added premium each year.

The more the benefits under lease option clause, the higher the premium charged and thus, more would be the future receipts of owner which would increase the expected present value of lease cash flows to the owner.

You might be interested in
A person who is highly knowledgeable or skilled in a particular domain, such as physics, anesthesiology, or teaching is best des
kaheart [24]
Expert in this field
4 0
3 years ago
Using _____ requires gathering a lot of information about customers’ preferences and shopping patterns, and some customers get i
coldgirl [10]

Answer:

Personalization.

Explanation:

Using personalization in customer relationship management (CRM) requires gathering a lot of information about customers’ preferences and shopping patterns, and some customers get impatient with answering long surveys about their preferences.

This ultimately implies that, personalization deals with gathering information about a specific customer's choice such as taste, requirements, product preferences, shopping styles or patterns in order to be able to serve him or her better, through the provision of goods and services that meets their needs.

8 0
2 years ago
Competition among economic units ______. Multiple select question. should not occur within a market system diffuses economic pow
rosijanka [135]

The Competition among economic units diffuses economic power within the businesses and households that make up the economy.

<h3>What is Economy?</h3>

Economy refers to the area or the region which produces the goods and services. It implies to the wealth and the resources of the nation. It involves the management of the finances. for example :- the stock market system of the United States.

The competition among the business leads to the innovation of the new products and the services which in turn is beneficial for the customers. It diffuses the economic power as the income earned gores in the market and the household.

Thus it helps in the economic growth of the nation. Therefore the correct option is diffuses economic power within the businesses and households that make up the economy.

Learn more about Economy here:

brainly.com/question/2421251

#SPJ1

5 0
1 year ago
The average size of farms in the united States increased from 100 acres in 1920 to 700 acres in 1980.Let be the average size x y
Andre45 [30]

Answer:

1950

Explanation:

8 0
2 years ago
Read 2 more answers
Demarco Lee invested $25,000 in the Camden &amp; Sayler partnership for ownership equity of $25,000. Prior to the investment, eq
Akimi4 [234]

Answer and Explanation:

The Journal entry is shown below:-

Equipment Dr, $42,000 ($222,000 - $180,000)

          To Kevin Camden-Capital $10,500 ($42,000 × 1 ÷ (1 + 3))

          To Chloe Sayler-Capital $31,500 ($42,000 × 3 ÷ (1 + 3))

(Being revaluation of equipment is credited)

Here we debited the equipment as it increased the assets  and we credited the  Kevin Camden-Capital and Chloe Sayler-Capital as  it also increased the equity

2. Cash Dr,  $25,000

      To Demarco Lee-Capital  $25,000

(Being admission is recorded)

Here we debited the cash as it increased the assets  and we credited the Demarco Lee-Capital as it also increased the equity

3 0
2 years ago
Other questions:
  • Henson company applies overhead on the basis of 120% of direct labor cost. job no. 190 is increased with $140,000 of direct mate
    7·1 answer
  • Suppose demand is given by q = 80 - 0.5p. what is the price elasticity of demand when p = 40?
    15·1 answer
  • Rural internet access, with one dominant provider that faces very little competition, is a good example of – market. it function
    6·2 answers
  • Which is the best choice to explain why human resource manager is so important to organizations
    13·1 answer
  • a. What is the total cash outflow for buying and for leasing a motor vehicle with a cash price of $33,000
    15·1 answer
  • Ann is interested in purchasing Ted's factory. Since Ann is a poor negotiator, she hires Mary to negotiate the purchase price. I
    14·2 answers
  • Pharoah Industries collected $106,000 from customers in 2019. Of the amount collected, $24,200 was for services performed in 201
    8·1 answer
  • 4. _______ are the fastest growing segment of today's workforce. They are optimistic, inventive and individualistic; they seek a
    11·1 answer
  • Which general staff member directs management of all incident.
    14·1 answer
  • For each decision, state whether the company is following a cost leadership or a product differentiation strategy.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!