Enzokuhle Ltd's lease has net cash flows of (R450 000) in year 0, (R324 000) in years 1 to 3 and R126 000 in year 4. Why is there an inflow in year 4?

Question

Accepted Answer

Because the tax saving on the year 3 lease payment is received at the end of year 4, and there is no payment in year 4

Answer

Because the lease converts into a loan

Answer

Because the lessor refunds the last payment

Answer

Because the asset is sold in year 4

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Enzokuhle Ltd's lease has net cash flows of (R450 000) in year 0, (R324 000) in ...

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