Spinning Wheels Co. is considering renting a new bike shop. The landlord has offered a number of alternatives for paying the rent. The company's desired rate of return is 10%.The landlord offered a 3-year lease with $4,000 to be paid for rent at the end of each year.
Using a spreadsheet or financial calculator, calculate the present value of rent payments over the life of the lease.
The present value of rent payments over the life of the lease is:
A) $ 4,000
B) $12,000
C) $ 9,016
D) $ 9,947
Correct Answer:
Verified
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