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American Public University Operations And Supply Chain Management Assignment Help -


Question - Chapter 21 Salaur Company is evaluating a lease arrangement being offered by TSP Company for use of a computer system. The lease is noncancelable, and in no case does Salaur receive title to the computers during or at the end of the lease term. The lease starts on January 1, 2011, with the first rental due at the beginning of the year. Additional information related to the lease is as follows: Yearly rental $3,557.25 Lease term 3 years Estimated economic life 5 years Purchase option $3,000 at end of 3 years, which approximates fair value Renewal option 1 year at $1,500; no penalty for nonrenewal; standard renewal clause Fair value at inception of lease $10,000 Cost of asset to lessor $10,000 Residual value Guaranteed '0' Unguaranteed ...Read More

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