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Any help given would be eternally appreciated. A seven-year capital lease of an executive jet requires semi-annual payments of $200,000 at the beginning of each
Any help given would be eternally appreciated.
A seven-year capital lease of an executive jet requires semi-annual payments of $200,000 at the beginning of each six month period. The company can borrow funds at 7.4% compounded semi-annually.
a. What long term lease liability will the firm set up at the start of the term of the lease?
b. What liability will remain after 4 years of the lease?
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