Question: Java Hut leased a specialty expresso machine for a 1 0 - year non - cancelable term. At the end of the 1 0 -

Java Hut leased a specialty expresso machine for a 10-year non-cancelable term. At the end of the 10-year term, Java Hut has four consecutive one-year renewal options. A replacement machine can be acquired, but due to an expensive installation process and Java Huts lease term for its store, Java Hut expects to lease the machine for 12 years.

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