How is this computation possible ? I didn't understand the logic behind this computation.
Swathi Krishna
CA Final
★ 8K+
28-Sep-20 01:12
347
Answers (1)
The return for lessor is 10%.
The lessor would get lease payments + unguaranteed residual value.
The present value of lease payments + present value of unguaranteed residual value should be equal to the fair value.