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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

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

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