Question
Cybertrex, a manufacturing facility, leased new equipment on January 1 and agreed to pay an annual lease fee of $18,000 at the end of the
Cybertrex, a manufacturing facility, leased new equipment on January 1 and agreed to pay an annual lease fee of $18,000 at the end of the next 10 years. The company's weighted average cost of capital is 8%. The 10-year 8% present value of $1 is 0.46319. The present value of a 10-year 8% annual dollar of $1 is 6.71008.
What is the present value of lease payments over 10 years?
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To calculate the present value of lease payments over 10 years we can use the formu...
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College Accounting A Contemporary Approach
Authors: David Haddock, John Price, Michael Farina
4th edition
978-1259995057, 1259995054, 978-0077503987, 77503988, 978-0077639730
