Discounted Present Value and Leases Study Appendix 9. Suppose Wal-Mart signed a 10-year lease for a new store location. The lease calls for an immediate payment of $25,000 and annual payments of $20,000 at the end of each of the next 9 years. Wal-Mart expects to earn 16% interest, compounded annually, on its investments. What is the present value of the lease payments? Problems