Chaplin Leasing leased a car to a customer. Chaplin will receive $150 a month for 60 months.

Question:

Chaplin Leasing leased a car to a customer. Chaplin will receive $150 a month for 60 months.
1. What is the present value of the lease if the annual interest rate in the lease is 12%? Use the PV function in Excel to compute the present value.
2. What is the present value of the lease if the car can likely be sold for $7,500 at the end of five years?