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Which type of lease could result in the customer paying hundreds or thousands of dollars if the residual value is less than expected at the end of the term?

open-ended lease :) A+


What is the residual for the point (36)?

A residual is defined in the context of some "expected" value. There is no information in the question regarding expected values.


Which type of lease does not require the customer to pay any extra money if the residual value is lower than expected at the end of term?

closed ended lease


What is the primary factor that may cause the residual value of a leased vehicle to be less than expected?

excessively high mileage


What is cost plus residual value?

The residual value of "cost plus" is whatever is charged which exceeds the cost. Example: I provide a quote the terms for a project as being "cost plus 20%". If the cost for my project is $100, then I would bill $120. The residual value is $20.


What type of lease does not require the customers to pay any extra money if the residual value is lower than expected at the end of the term?

closed ended lease


What is the residual value of a leased vehicle?

The residual value of a leased vehicle is the estimated worth of the vehicle at the end of the lease term. It is determined by the leasing company based on factors like the vehicle's make, model, expected depreciation, and market conditions. This value is crucial because it helps calculate the monthly lease payments, with lower residual values typically resulting in higher payments. Additionally, the residual value can influence the decision to purchase the vehicle at lease end.


is this true Residual value means the actual cash one receives at end of life of asset?

Residual value is the value of the asset that they are likely to recover at the end of the life of the asset. It is the value that is expected to be at the end. But its not necessarily that we realise the amount at the end of the period. It can be more or less than that.


What is a residual lake?

Lakes which are made by residual rocks which are left after weathering and erosion and form the residual lakes.


What is a residual haunting?

A residual haunting is a playback of a past event.


Who does Residual income of a firm belongs to?

The residual income of the firm belongs to


What is the functional residual capacity FRC composed of?

Functional Residual Capacity (FRC) = Expiratory Reserve Volume (ERV) + Residual Volume (RV)