Question
Bob enters into a 12-year lease requiring year-end payments of $10,000 each year for 12 years. Bills borrowing rate is 6% compounded annually. What is
Bob enters into a 12-year lease requiring year-end payments of $10,000 each year for 12 years. Bills borrowing rate is 6% compounded annually. What is the present value of the lease payments? (answers rounded)
Period PV of $1 at 6% PV of $1 at an AD of 6% PV of $1 at an OA of 6%
12 .49697 8.88687 8.38384
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Financial Accounting
Authors: Walter B. Meigs, Robert F. Meigs, Mark Bettner, Ray Whittington
9th Edition
0070434360, 978-0070434363
