American_Bankers_Association
CTFA · Question #193
CTFA Question #193: Real Exam Question with Answer & Explanation
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Question
A commonly sited benefit of leasing is absence of down payment. However, today most leases require a "capital cost reduction" which is the down payment that lowers the potential depreciation and therefore your monthly lease payments. You may be able to negotiate a lower capital cost reduction or find a lease that doesn't require one. The lease payment calculation is based on four variables. Which one of the following:
Options
- ACapitalized cost
- BForecast residual value
- CMoney factor
- DLease date
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