Question
The following information is gathered from Bed Bath & Beyonds 10-K report for fiscal year ended March 3, 2007. As of March 3, 2007, future
The following information is gathered from Bed Bath & Beyonds 10-K report for fiscal year ended March 3, 2007. As of March 3, 2007, future minimum lease payments under noncancelable operating leases are as follows:
Fiscal Year Amount
2007 $ 372,168
2008 379,091
2009 364,226
2010 338,374
2011 306,524
Thereafter 1,435,481
Total future minimum
lease payments $3,195,864
If the appropriate discount rate is 10% for the operating leases and the amount after 2011 will be paid over a 4-year period, the present value of the operating leases is
A. | $706,342 | |
B. | $2,136,329 | |
C. | $2,053,064 | |
D. | $3,195,864 |
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