Question
At the end of 2016, LeaseCo leases identical equipment, agreeing to pay $500,000 rent each year for the next 10 years. If the interest rate
At the end of 2016, LeaseCo leases identical equipment, agreeing to pay $500,000 rent each year for the next 10 years. If the interest rate is 12%, then the present value of 10 payments of $500,000 discounted at 12% is $2,825,112 ($500,000 5.650223). Where does the 5.650223 come from? What did I forget to do?
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Accounting And Finance An Introduction
Authors: Eddie McLaney, Peter Atrill
10th Edition
1292312262, 978-1292312262
