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Organic Markets reports operating lease information in its 2016 annual report (in millions). You determine that a discount rate of 6.0% is appropriate for Organic
Organic Markets reports operating lease information in its 2016 annual report (in millions). You determine that a discount rate of 6.0% is appropriate for Organic Markets and calculate the following. What economic liability is potentially left off Organic Markets balance sheet? Note: Round the remaining lease term to the nearest whole year, using the final lease payment provided as an estimate of annual future payments.
Minimum operating | |
---|---|
Year | lease payments |
2017 | $433 |
2018 | 522 |
2019 | 557 |
2020 | 568 |
2021 | 569 |
Thereafter | 6,485 |
$9,134 |
Select one:
a. $5,570 million
b. $6,704 million
c. $9,134 million
d. $6,788 million
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