Use the lease footnote to calculate the discount rate implied by Target'sfinance leases (Hint Create the long term capital lease payment schedule the same way we did in class Assume that the payments made in 2024 and beyond are the same amount as in 2023 for as long as possible, with the final year containing the remainder ) Target discloses their own estimate of the weighted average discount rate on finance leases in the lease footnote How does the discount rate you calculated above compare toTarget'sestimated rate What is Target's incentive to over estimate this rate Use the lease footnote and the discount rate you calculated in part 2 a to calculate the present value of the operating leases (Hint Like we did in class, treat operating lease payments in 2023 and beyond as an annuity in the amount of 2022's payment for theexact number of years it is possible to make this payment ) How does your estimate of operating lease liabilities compare to Target's calculationof operating lease liabilities Why do they differ The lease footnote discloses the fiscal 2018 cash flow from operating leases If we truly converted the operating leases to financing leases, by what percentage would Target's2018 operating cash flow change (hint use the discount rate you calculated in part 2 a ) 2 Leases a Use the lease footnote to calculate the discount rate implied by Target's nance leases (Hint Create the long term capital lease payment schedule the same way we did in class Assume that the payments made in 2024 and beyond are the same amount as in 2023 for as long as possible, with the nal year containing the remainder ) b Target discloses their own estimate of the weighted average discount rate on nance leases in the lease footnote How does the discount rate you calculated above compare to Target's estimated rate What is Target's incentive to over estimate this rate 0 Use the lease footnote and the discount rate you calculated in part 2 a to calculate the present value of the operating leases (Hint Like we did in class, treat operating lease payments in 2023 and beyond as an annuity in the amount of 2022's payment for the exact number of years it is possible to make this payment ) (1 How does your estimate of operating lease liabilities compare to Target's calculation of operating lease liabilities Why do they differ e The lease footnote discloses the scal 2018 cash ow from operating leases If we truly converted the operating leases to nancing leases, by what percentage would Target's 2018 operating cash ow change (hint use the discount rate you calculated in part 2 a )

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Use the lease footnote to calculate the discount rate implied by Target'sfinance leases. (Hint: Create the long-term capital lease payment schedule the same way we

Use the lease footnote to calculate the discount rate implied by Target'sfinance
leases. (Hint: Create the long-term capital lease payment schedule the same way we did in class: Assume that the payments made in 2024 and beyond are the same amount as in 2023 for as long as possible, with the final year containing the remainder.)
Target discloses their own estimate of the weighted average discount rate on finance leases in the lease footnote. How does the discount rate you calculated above compare toTarget'sestimated rate?What is Target's incentive to over-estimate this rate?
Use the lease footnote and the discount rate you calculated in part 2.a. to calculate the present value of the operating leases. (Hint: Like we did in class, treat operating lease payments in 2023 and beyond as an annuity in the amount of 2022's payment for theexact number of years it is possible to make this payment.)
How does your estimate of operating lease liabilities compare to Target's calculationof operating lease liabilities? Why do they differ?
The lease footnote discloses the fiscal 2018 cash flow from operating leases. If we truly converted the operating leases to financing leases, by what percentage would Target's2018 operating cash flow change (hint: use the discount rate you calculated in part 2.a.)?

2. Leases: a. Use the lease footnote to calculate the discount rate implied by Target's nance leases. (Hint: Create the long-term capital lease payment schedule the same way we did in class: Assume that the payments made in 2024 and beyond are the same amount as in 2023 for as long as possible, with the nal year containing the remainder.) b. Target discloses their own estimate of the weighted average discount rate on nance leases in the lease footnote. How does the discount rate you calculated above compare to Target's estimated rate? What is Target's incentive to over-estimate this rate? 0. Use the lease footnote and the discount rate you calculated in part 2.a. to calculate the present value of the operating leases. (Hint: Like we did in class, treat operating lease payments in 2023 and beyond as an annuity in the amount of 2022's payment for the exact number of years it is possible to make this payment.) (1. How does your estimate of operating lease liabilities compare to Target's calculation of operating lease liabilities? Why do they differ? e. The lease footnote discloses the scal 2018 cash ow from operating leases. If we truly converted the operating leases to nancing leases, by what percentage would Target's 2018 operating cash ow change (hint: use the discount rate you calculated in part 2.a.)