you are adjusting the operating lease expenses for company x. the pre tax cost of debt for company x is 5%. its operating lease payment for the next five years will be $200. $300. $400,$300 and $400 (M).

1. what is the debt value of the lease ?

2. Assume that company Z has conventional debt of $900M, what is devt outstanding of company x after you adjust for the lease commitment?

3. assume that after year 5, the annual payment for company x will be $200 forever. what is the debt value of the leases this time ?