Domebo Corporation has entered into a 5 year lease for a piece of equipment. The annual payment under the lease will be $2,200, with payments being made at the beginning of each year. If the discount rate is 12%, the present value of the lease payments is closest to (Ignore income taxes.):

Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided. (Round your intermediate calculations to 3 decimal places.)

Garrison 16e Rechecks 2017-12-15

Multiple Choice

• $11,000

• $7,931

• $11,379

• $8,881