For the following lease,determine the minimum present value calculation for the lessor.
$$\begin{array} { | l | l | }
\hline \text { Annual payment (due at end of year) } & \$ 32,000 \
\hline \text { Lease term } & 5 \
\hline \text { Incremental rate } & 11 \% \
\hline \text { Implicit rate (known to lessee) } & 9 \% \
\hline \text { Executory costs } & 10,000 \
\hline
\end{array}$$
A)81,310
B)85,572
C)118,269
D)124,469

Question

For the following lease,determine the minimum present value calculation for the lessor.
$$\begin{array} { | l | l | } 
\hline \text { Annual payment (due at end of year) } & \$ 32,000 \
\hline \text { Lease term } & 5 \
\hline \text { Incremental rate } & 11 \% \
\hline \text { Implicit rate (known to lessee) } & 9 \% \
\hline \text { Executory costs } & 10,000 \
\hline
\end{array}$$
A)81,310
B)85,572
C)118,269
D)124,469

Quizplus · Accepted Answer

The Answer of For the following lease,determine the minimum present value calculation for the lessor.
$$\begin{array} { | l | l | } 
\hline \text { Annual payment (due at end of year) } & \$ 32,000 \
\hline \text { Lease term } & 5 \
\hline \text { Incremental rate } & 11 \% \
\hline \text { Implicit rate (known to lessee) } & 9 \% \
\hline \text { Executory costs } & 10,000 \
\hline
\end{array}$$
A)81,310
B)85,572
C)118,269
D)124,469

For the Following Lease,determine the Minimum Present Value Calculation for the Lessor