Question: Suppose Wal Mart signed a 10 year lease for a new store
Suppose Wal-Mart signed a 10-year lease for a new store location. The lease calls for an immediate payment of $50,000 and annual payments of $40,000 at the end of each of the next 9 years. Wal-Mart expects to earn 16% interest, compounded annually, on its investments. What is the present value of the lease payments?
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