Intermediate. PQ is purchasing the lease on a property which has an annual lease payment of $300

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Intermediate. PQ is purchasing the lease on a property which has an annual lease payment of $300 in perpetuity. The lease payments will be paid annually in advance.

PQ has a cost of capital of 12 per cent per annum.

The present value of the lease payments is:

(a) $2500

(b) $2800

(c) $3600

(d) $3900

(2 marks)

CIMA P1 Performance Operations

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Management And Cost Accounting

ISBN: 9781408093931

9th Edition

Authors: Colin Drury

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Question Posted: Jun 05, 2024 01:02 AM

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Intermediate. PQ is purchasing the lease on a property which has an annual lease payment of $300

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Management And Cost Accounting

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