On January 1, 2021, Majestic Mantles leased a lathe from Equipment Leasing under a 20-year financing lease. Lease payments of $20,000 are made annually with the first payment due at the signing of the lease. The interest rate on the lease is 10%.

Assignment:

1. What is the present value of the lease payments? Show your computations in an excel spreadsheet.
2. Create an amortization schedule for the life of the lease in an excel spreadsheet.