Net Investment in a Lease

Net Investment in a Lease
Understanding the net investment in a lease involves considering the total amount of funds that a lessor has invested in a leased asset. This includes the cost of the asset, received grants, rental payments, taxation implications, residual values, and various interest payments and receipts.
Net Investment in a Lease
Net Investment in a Lease refers to the total amount of the lessee's investment, calculated as the sum of lease receivables and any unguaranteed residual value of the leased asset, discounted to present value.

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