Domebo Corporation has entered into a 5 year lease for a piece of equipment. The annual payment under the lease will be $2,000, with payments being made at the beginning of each year. If the discount rate is 10%, the present value of the lease payments is closest to (Ignore income taxes.):

Click here to view Exhibit 13B-2 to determine the appropriate discount factor(s) using table.

Multiple Choice

$7,582

$8,340

$10,000

$10,824