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On 1 July 2019, ABC Ltd leased an asset for 3 years, with the following lease payments:$10,000 on 30 June 2020, 30 June 2021, and

On 1 July 2019, ABC Ltd leased an asset for 3 years, with the following lease payments:$10,000 on 30 June 2020, 30 June 2021, and 30 June 2022, and a guaranteed residual of $5,000 at the end of the lease (on 30 June 2022). The interest rate implicit in the lease is 6%.

Required: Calculate the present value of lease payments.

 

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