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How is this computation possible ? I didn't understand the logic behind this computation.
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Swathi Krishna
CA Inter
★ 7K+
28-Sep-20
45
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.
Suraj Lakhotia
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