Net Investment in Lease = PV of MLP + PV of UGR = Fair Value . Is these correct? If incorrect , kindly explain
Prethivi Rajan
CA Final
★ 9K+
07-Feb-23 00:29
324
Answers (2)
Yes.
This is from the standpoint of lessor.
Please note that the interest rate implicit in lease is the rate which make the PV of MLP + PV UGR = FV of leased asset