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In 2 0 2 4 , Headland Enterprises negotiated and closed a long - term lease contract for newly constructed truck terminals and freight storage
In Headland Enterprises negotiated and closed a longterm lease contract for newly constructed truck terminals and freight storage facilities. The buildings were constructed on land owned by the company. On January Headland took possession of the leased property. The year lease is effective for the period January through December Advance rental payments of $ are payable to the lessor owner of facilities on January of each of the first years of the lease term. Advance payments of $ are due on January for each of the last years of the lease term. Headland has an option to purchase all the leased facilities for $ on December At the time the lease was negotiated, the fair value of the truck terminals and freight storage facilities was approximately $ If the company had borrowed the money to purchase the facilities, it would have had to pay interest.
Compute the present value of lease vs purchase. Round factor values to decimal places, eg and final answer to decimal places, eg
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