Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The aggregate minimum rental commitments under noncancelable leases for the periods shown at December 31, 2015, are as follows: Years (S millions) 2016 2017 2018

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The aggregate minimum rental commitments under noncancelable leases for the periods shown at December 31, 2015, are as follows: Years (S millions) 2016 2017 2018 2019 2020 Thereafter Total minimum rental commitments Capital Leases $302 278 187 97 45 159 1,068 Operating Leases $2,744 2,486 2,211 1,939 1,536 7,297 $18,213 Less interest and executory costs Present value of minimum lease payments Less current installments 957 271 $686 Long-term obligation at December 31, 2015 (c) Compute the present value of Verizon's operating leases, assuming an 3.85% discount rate and rounding the remaining lease term to 3 decimal places. (Use a financial calculator or Excel to compute. Do not round until your final answers. Round each answer to the nearest whole number.) (S millions) Present Value Year 1 2,642 Year 2 2.305 1974 1.667 1,272 6.042 x Year 3 Year 4 Year 5 After 5 Total 15,677 * (Use subsequent rounded answers for calculation.) (c) Compute the present value of Verizon's operating leases, assuming an 3.85% discount rate and rounding the remaining lease term to 3 decimal places. (Use a financial calculator or Excel to compute. Do not round until your final answers. Round each answer to the nearest whole number.) (S millions) Present Value 2,642.472X 2,304.522 x Year 1 Year 2 Year 3 1,974.423X 1,667.54 X 1,271,808 x 5,815.709 x Year 4 Year 5 After 5 Total 15,676.47 X (Use subsequent rounded answers for calculation.) (c) Compute the present value of Verizon's operating leases, assuming an 3.85% discount rate and rounding the remaining lease term to 3 decimal places. Use a financial calculator or Excel to compute. Do not round until your final answers. Round each answer to the nearest whole number.) S millions) Present Value Year 1 2,642.279 X Year 2 2.305.09 x Year 3 1974.1 1,66706 X 1,271.62 ,368.12 Year 4 Year 5 After 5 Tocal (Use subsequent rounded answers for calculation.) 13,228.26 x

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management Of Health Care Organizations

Authors: William N. Zelman, Michael J. McCue, Noah D. Glick

3rd Edition

0470497521, 9780470497524

More Books

Students also viewed these Finance questions