16.

Wendy's Widgets is negotiating a 5-year lease of a building. In order to entice her to lease, the owner has offered discounted lease payments for the first two years. The following will be her lease payments over the life of the lease, to be made at the end of each year: Years 1 and 2: $5,000 per year Years 3 and 4: $7,000 per year Year 5: $8,000 that year Assuming a 7% annual interest rate, what is the present value of the lease? HTML Editor