You have signed an operating lease on a printing press.The lease is for ten years, with an option to extend for another ﬁve years.The expected life of the press is ten years, after which it is fully depreciated.At the moment you consider using the option to extend the lease, you also get notice that the press will continue to function for another ten years without any problem.What are your considerations in deciding whether or not to extend the lease?

Question

Quizplus · Accepted Answer

The Answer of You have signed an operating lease on a printing press.The lease is for ten years, with an option to extend for another ﬁve years.The expected life of the press is ten years, after which it is fully depreciated.At the moment you consider using the option to extend the lease, you also get notice that the press will continue to function for another ten years without any problem.What are your considerations in deciding whether or not to extend the lease?

You Have Signed an Operating Lease on a Printing Press