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(Ignore income taxes in this problem.) Lansing Steel Company just signed a 4 year lease for a building it will use as a warehouse to
(Ignore income taxes in this problem.) Lansing Steel Company just signed a 4 year lease for a building it will use as a warehouse to store their construction equipment. This lease has annual payments of $5,144. Lansing's first lease payment is due at the end of 2020 and all the rest of the payments will also be made at the end of the year. Assuming the discount rate is 10%, then what is the present value of the lease payments closest to? Click here to view Exhibit 8B-1 and Exhibit 8B-2 to determine the appropriate discount factor(s) using tables. $21,191 O $11,875 $23,085 $16,306
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