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On September 1 , 2 0 2 4 , a company decides to lease office space in a building. The building s owner offers the
On September a company decides to lease office space in a building. The buildings owner offers the company the following options, with the first monthly payment beginning September :
Sign a twoyear lease with monthly payments of $
Sign a threeyear lease with monthly payments of $
Sign a fouryear lease with monthly payments of $
Required:
For each option, calculate the present value of the lease payments using an interest rate of Hint: Use a financial calculator or Excel.
Record each lease on September
For which option is the lease payable recorded for the highest amount?
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