(Ignore income taxes in this problem. )Virani Corporation has entered into a 8 year lease for a piece of equipment.The annual payment under the lease will be $2,000,with payments being made at the beginning of each year.If the discount rate is 9%,the present value of the lease payments is closest to:
A)$8,030
B)$12,066
C)$16,000
D)$14,679

Question

Quizplus · Accepted Answer

PV = Cash flow F1F1F1S1F1F1F10 PV Factor
= $2,000 F1F1F1S1F1F1F10 1.000 + $2,000 F1F1F1S1F1F1F10 5.033
= $12,066

(Ignore Income Taxes in This Problem