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Hi, could you kindly guide me please? Thanks in advance Leasing is prevalent among department stores. The following information with respect to operating and capital

Hi, could you kindly guide me please? Thanks in advance

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Leasing is prevalent among department stores. The following information with respect to operating and capital leases was taken from the 2018 annual reports of H20 Company (H20) and Premium Company (PC). Note that PC discloses the present value (and interest rate) of its operating as well as capital leases. Minimum lease payments (RM millions) -_I--_PCI-.- 201 4 201 5 201 6 201 7 201 8 Thereafter Total Present value Less Current portion Long term portion Interest rate Required: a. Using the interest rate provided by PC, calculate H20's operating leases present value. b. Estimate the interest rate that H2O uses to discount its capital leases. Compare the rate determined in part b with the rate used by PC. c. Use the rate determined in b to estimate the present value of HZO's operating leases. Compare your answer with the present value calculated in a

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