Question
Parker Leasing leased a car to a customer. Parker will receive $400 a month for 72 months. (Assume the lease payments occur at the end
Parker Leasing leased a car to a customer. Parker will receive $400 a month for
72 months. (Assume the lease payments occur at the end of each month.) EXPLAIN AND MENTION COMPLETE EXCEL FORMULAS. DO IT IN EXCEL SHOWING FORMULAS
| 1 | What is the present value of the lease if the annual interest rate in the lease is 12%? Use the PV function in Excel to compute the present value. |
|
2 | What is the present value of the lease if the car can likely be sold for $5,000 at the end of six years? |
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Contemporary Auditing Real Issues And Cases
Authors: Michael Chris Knapp
9th International Edition
1133187900, 978-1133187905
