Artest Lease leased a car. Artest will receive $300 a month for 60 months. 1. What is
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1. What is the present value of the lease if the annual interest rate in the lease in 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 be sold for $5,000 at the end of five years?
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Answer 1 annuity amount 300 pm or 3600 pa rate of interest 12 pa time 60 months or 5 y...View the full answer
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Related Book For
Financial accounting
ISBN: 978-0132751124
9th edition
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
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