Select the best answer for the question. 5. (Ignore income taxes in this problem.) Latting Corporation has entered into a seven-year lease for a building it will use as a warehouse. The annual payment under the lease will be $4,781. The first payment will be at the end of the current year and all subsequent payments will be made at year-ends. If the discount rate is 6 percent, the present value of the lease payments is closest to A. $31,573 B. $33,467 C. $26,688 O D. $22,257.

5. (lanore income taxes in this problem.) Latting Corporation has entered into a seven-year lease for a building it wilf use as a warehouse. The annual payment under the lease will be 54,781 . The first payment wili be at the end of the current year and all subsequent payments will be made at year-ends. If the discount rate is 6 percent, the present value of the lease payments is closest to A. 551573 B. 533,467 C. 525680 D. 522,257