Question 09020

_{The following details relate to the Lease agreement between JMK :Ltd ( Lessor ) and PJK ltd ( lessee )}

_{Asset leased - Machinery}

_{Annual lease payments = K20000}

_{Lease term- 5 years}

_{r - 10 %}

_{Useful life of machinery = 10 years}

_{Lease term - 8 years}

_{Residue value - nil}

_{Required Calculate the present value of the MLP}