accounting intermedia 2

Question No: 01 Delta Airlines is planning to raise $47,000,000 on 10-year rate from the Swiss Bank at 5% interest rate under the RRR of 10%. The borrowed money will be allotted to buy Boeing 737. Delta has another option to lease the Boeing 737 from the New York Lease Company. The New York Lease Company is willing to provide lease services under straight-line method with an RRR of 12% and economic life of 15 years. The salvage value is expected to be 0.12 CI and the annual maintenance cost of the Aircraft is anticipated to be 0.03 CI. Required: 1. Based on the concept of the right and minimum lease payment for the leaser and the lessee, figure out the right (Lt) lease amount. 2. Based on the residual value concept, figure out the present value of the leased assets and the present value of lease payment from the leaser and the lessee perspectives. Question No: 01 Delta Airlines is planning to raise $47,000,000 on 10-year rate from the Swiss Bank at 5% interest rate under the RRR of 10%. The borrowed money will be allotted to buy Boeing 737. Delta has another option to lease the Boeing 737 from the New York Lease Company. The New York Lease Company is willing to provide lease services under straight-line method with an RRR of 12% and economic life of 15 years. The salvage value is expected to be 0.12 CI and the annual maintenance cost of the Aircraft is anticipated to be 0.03 CI. Required: 1. Based on the concept of the right and minimum lease payment for the leaser and the lessee, figure out the right (Lt) lease amount. 2. Based on the residual value concept, figure out the present value of the leased assets and the present value of lease payment from the leaser and the lessee perspectives