Ask Question
BusinessBusiness
13 June, 14:06

Pita Pub leased a specialty machine for a five-year non-cancelable term. At the end of the five-year term, Pita Pub has four consecutive one-year renewal options. A replacement machine can be acquired, but due to an expensive installation process and Pita Pub's lease term for its mall location, Pita Pub expects to lease the machine for seven years. What is the lease term?

+4
Answers (1)
  1. 13 June, 14:53
    0
    Answer: 7 years

    Explanation:

    A lease is an agreement between parties for the use of an asset by one of the parties whilst paying the other party for the usage. The party leasing is known as the lessor and the party being leased to is the Lessee.

    The lease term in this scenario consists of the original non-cancelable 5 years and then an additional 2 year consecutive renewal which Pita Pub is entitled to and wants to exercise due to high installation costs and the lease term for their location. So that brings the total to 7 years.

    If you need any clarification do comment.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Pita Pub leased a specialty machine for a five-year non-cancelable term. At the end of the five-year term, Pita Pub has four consecutive ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
The journal entry to record the prior year's deferred Inflows: property taxes (those expected to be collected more than 60 days beyond year-end) as revenue in the current year would include: a. A credit to Revenues Control. b.
Answers (1)
Which rehearsal is used to determine how a subordinate leader intends to accomplish the mission?
Answers (1)
Suppose there are only two goods produced in an economy: phones and meals. Maria is adept at assembling electronics but has poor skills at preparing food. Mike is an accomplished chef but is not very skilled at assembling electronics.
Answers (1)
The bank statement for Lee Co. revealed a balance of $1,200 while the checkbook balance showed $1,600. Checks outstanding totaled $50. A check printing charge for $7.00 was on the bank statement. There was a $100 NSF shown on the bank statement.
Answers (1)
Which rule requires that contracts that would normally fall under the statute of frauds and need writing if negotiated by the principal must be in writing even if negotiated by an agent?
Answers (1)
New Questions in Business
Janet has identified four features of a college to which she is planning to apply for admission. Identify the pros and cons of Janet's choice of college.
Answers (1)
Which is riskier, but has the potential for a higher rate of return? saving or investing
Answers (2)
You are comparing two annuities. Annuity A pays $100 at the end of each month for 10 years. Annuity B pays $100 at the beginning of each month for 10 years. The rate of return on both annuities is 8 percent.
Answers (1)
What will you call an employee who prioritize her goals rather than the team goal?
Answers (1)
Vertical integration allows the firm to gain market power as the firm develops the ability to save on its operations, avoid market costs, improve product quality, and possibly protect its technology from its rivals. A. True B. False
Answers (1)
Home » Business » Pita Pub leased a specialty machine for a five-year non-cancelable term. At the end of the five-year term, Pita Pub has four consecutive one-year renewal options.
Sign Up Forgot Password?