Question
On July 1, 2024, a company leased a building. The lease agreement calls for the company to make lease payments of $6,354.92 each month
On July 1, 2024, a company leased a building. The lease agreement calls for the company to make lease payments of $6,354.92 each month for the next two years, with the first lease payment beginning July 31. The company's normal borrowing rate is 12%. Required: 1. Calculate the present value of the lease payments. Round to the nearest whole dollar. (Hint Use a financial calculator or Excel.) 2. How will the signing of the lease agreement on July 1, 2024, affect the financial statements? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the present value of the lease payments. Round to the nearest whole dollar. (Hint: Use a financial calculator or Excel.) PV of lease payments
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