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Calculate the following annual lease rentals for the Lessor from the given data i) Equated ii) Stepped (No increase for 2 years and then 15%
Calculate the following annual lease rentals for the Lessor from the given data i) Equated ii) Stepped (No increase for 2 years and then 15% every year) iii) Ballooned (annual rental of Rs.25 lakhs from year 1-4) iv) Deferred (Deferment period of 2 years) Investment Cost - Rs.5 Crores Primary Lease term - 5 years Estimated residual value after 5 years - Rs.50 lakhs Pre-tax required rate of return - 12% p.a.
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