Rick's Repairs, Inc. is considering renting a new shop. The landlord has offered a number of alternatives
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Question:
Rick's Repairs, Inc. is considering renting a new shop. The landlord has offered a number of alternatives for paying the rent. The present value factors at the company's rate of return are as follows:
Period
Present Value Factor
1
0.90909
2
0.82645
3
0.75131
The landlord offered a 2-year lease with $20,000 to be paid for rent at the end of each year.
The present value of rent payments over the life of the lease is:
Select one:
A.$20,000
B.$33,208
C.$34,711
D.$40,000
Posted Date: