Question
A company will receive $10,000 each year in lease payments for the next five years. The payments will start at the end of the first
A company will receive $10,000 each year in lease payments for the next five years. The payments will start at the end of the first year. Assuming an annual interest rate of 4% is appropriate, the present value of an ordinary annuity is 4.45182 × $10,000 = $44,518, and the present value of an annuity due is 4.62989 × $10,000 = $46,299. Which amount should be recorded for this sale?
- $44,518
- $46,299
- $48,000
- $50,000
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Numerical Methods For Engineers
Authors: Steven C. Chapra, Raymond P. Canale
5th Edition
978-0071244299, 0071244298
