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The lessor always uses the implicit interest rate built into the contract regardless of the amount of the lessee's incremental borrowing rate? Can you help?Daichi-92532 -
The lower one of incremental borrowing rate or Discount rate used by lessor should be used, I guess.
Lease amount should be averaged during the term
To reflect the share of the investment, the amount should be 40,000*0.3, I guess
20,000*0.4 should be decreased from the investment income.
Why is the adjusted risk free rate used??