When using the discounted cash flow approach to lease capitalization, how is the off-balance sheet lease obligation estimated?
A) present value of the replacement cost of the leased asset
B) rent expense times capitalization rate
C) present value of the future minimum lease payments
D) present value of the historical cost of the leased asset
Answer: C
Business
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Brislin Products has a new product going on the market next year. The following data are projections for production and sales:
Variable costs $250,000 Fixed costs $450,000 ROI 14% Investment $2,000,000 Sales 200,000 units What is the markup percentage? a) 112% b) 40% c) 20% d) 62%
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Without mutual assent between the parties, there is no contract
Indicate whether the statement is true or false
Business