On January 1, 2025, Culver leases a building from Capital Leasing for 10 years with a monthly lease payment of $15500 payable at the beginning of each month. The lease contract allows Culver to terminate the lease after three years by paying cancellation clause of $232500. At the start of the lease, Capital is reasonably certain that Culver will not continue the lease past three years. Ignoring the time of money, what is the total of Culver's lease payments that would be used in the present value test?

Answer rating: 100% (QA)

Answer and explanation The total lease payments for the full 10year lease would ... View the full answer