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how do you figure out the present value of lease with annuity $1154874 Givens: Before Tax Lease paymer 950,000.00 5,000,000.00 (pv) Loan Amount Length of

how do you figure out the present value of lease with annuity $1154874
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Givens: Before Tax Lease paymer 950,000.00 5,000,000.00 (pv) Loan Amount Length of Loan Lease 5 (nper) Interest Rate 5% (rate) After Tax Cost of Debt Tax Rate 40% Annual Depreciation Expense [a] $500,000 $5,00 Annual Depreciation Tax Shield [b] $500 Annual Loan Payment [c]$380,000 Present value of Lease Interest Rate [d] $380,000 $9500 purchase price 10 Years life of asset Annual Depreciation Expe Annual Depreciation Expense x 40% Tax Rate Annual Deprecia Annuity payment x PVFA(rin) 596,5, 15000000 (Annuity Payment) x PvFA (59%,5) 1,154,873.99 (Annuity Payment) x 1,154,873.99 Annuity Payment $1,154,874 Annuity Payment $1,154,874 5.20) PMT(rat Present Value of Lease a Interest Rate Before T Present value of Lease Interest Rate Purchasing Arrangement Loan Interest prinicpal Payment Expense Payment Year [Given 9] ID x [Given 4] [Al-[Bl 1,154,874.00 57,743.70 Sheet 1 Version 2 Key value of D-1 is the value in th

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