The lessor's implicit rate is the rate that the lessor would incur in a debt agreement under similar terms and circumstances.

Name: The lessor's implicit rate is the rate that the lessor would incur in a debt agreement under similar terms and circumstances.
Brand: Quizplus
Rating: 4.9 (45 reviews)

Question

Quizplus · Accepted Answer

The lessor's implicit rate is the interest rate that causes the present value of lease payments and unguaranteed residual value to equal the fair value of the leased asset plus any initial direct costs.

The Lessor's Implicit Rate Is the Rate That the Lessor