Question
At the end of 2016, LeaseCo leases identical equipment, agreeing to pay $500,000 rent each year for the next 10 years. The interest rate is
At the end of 2016, LeaseCo leases identical equipment, agreeing to pay $500,000 rent each year for the next 10 years. The interest rate is 12%, and the present value of 10 payments of $500,000 discounted at 12% is $2,825,112 ($500,000 × 5.650223).
Where did the figure 5.650223 come from?
Step by Step Solution
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Step: 1
The figure 5650223 is the present value factor derived from the formula for calculating the pre...
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Intermediate Accounting Reporting and Analysis
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
2nd edition
9781305727557, 1285453824, 9781337116619, 130572755X, 978-1285453828
