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How to use BAII plus calculator for following: 38. Calculate the present value of the minimum lease payments On January 1, 20X6, Beatty Inc. entered

How to use BAII plus calculator for following:

38. Calculate the present value of the minimum lease payments On January 1, 20X6, Beatty Inc. entered into a five-year lease to acquire some machinery. Beatty reports under ASPE and is the lessee. The terms of the lease are as follows: Lease payments of $25,000 are made annually on the first day of the year. Included in the annual lease payments are maintenance fees of $2,000 per year. The machinery reverts to the lessor at the end of the lease and the lease contains no renewal options. Beatty uses straight-line depreciation for the machinery that it owns. The machinery has a fair value of $100,000 on January 1, 20X6, and has an estimated economic life of five years with no residual value. Beattys incremental borrowing rate is 11% per year. The leases implicit interest rate is 10%. What is the present value of the minimum lease payments?

*answer is. $95,907

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