When the lessee quarantees the residual value at the end of the lease term, the Multiple Choice lessor will use this amount in computing periodic depreciation expense lessor will receive an additional cash flow at the end of the lease term lessee may have to pay the lessor additional cash if the actual residual value is not equal to the estimated residual value lessee will have to pay the lessor additional cash because the guaranteed residual value was included in computing the annual rental amounts