2027 CLFP Recertification Quiz #2: Pricing Terminology 2027 CLFP Recertification: Quiz #2: Pricing Terminology 1. What does “yield” represent in equipment leasing? * The finance agreement’s depreciation schedule The annualized rate of return from a transaction’s cash flows The monthly lease payment, including taxes and fees The upfront cost of financed equipment 2. What is a lease rate factor primarily used for? * Determining lease payments Measuring profitability Estimating residual value Calculating periodic lease payments 3. What is the purpose of a discount rate? * To measure tax benefits To determine present value of future cash flows To set lease payments To calculate commissions 4. How is the Internal Rate of Return (IRR) defined? * The annual rate where total payments equal cost The difference between equipment cost and residual value The rate that maximizes lease payments The rate where net present value of cash flows equals zero 5. What is the difference between a point and a basis point? * A point equals 0.01%, while a basis point equals 1% A point equals 1%, while a basis point equals 0.01% Both represent the same value Basis points apply only to taxes Name * Name First First Last Last Email - USE THE EMAIL ADDRESS WHERE THE INSTRUCTIONS WERE SENT TO (NOT FROM); OTHERWISE, OUR SYSTEM WILL NOT UPDATE YOUR CONTACT RECORD! * Submit If you are human, leave this field blank.
