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

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?

Step by Step Solution

★★★★★

3.29 Rating (155 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 6 74326 EXCEL ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

993-B-C-A-C-A (1348).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!

Basic properties of growth rates. Use the fact that the growth rate of a variable equals the time derivative of its log to show: (a) The growth rate of the product of two variables equals the sum of...

McGee Leasing leased a car to a customer. McGee will receive $300 a month, at the end of each month, for 36 months. Use the PV function in Excel to calculate the asnwers to the following questions 1....

Georgetown Leasing leased a car. Georgetown will receive $300 a month for 60 months. 1. What is the present value of the lease if the annual interest rate in the lease in 12%? Use the PV function in...

Presented below are two independent situations. 1. Speedy Car Rental leased a car to Rundgren Company for 1 year. Terms of the operating lease agreement call for monthly payments of $500. 2. On...

how to do 1 and 2 Mckoy Leasing leased a car to a customer. Mckoy will receive $150 a month for 60 months. (Assume the lease payments occur at the end of each month.) 1. What is the present value of...

Haworth Leasing leased a car to a customer. Haworth will receive $150 a month, at the end of each month, for 48 months. Use the PV function in Excel to calculate the answers to the following...

Parker Leasing leased a car to a customer. Parker will receive $150 a month, at the end of each month, for 72 months. Use the PV function in Excel to calculate the answers to the following questions...

Parker Leasing leased a car to a customer. Parker will receive $400 a month for 72 months. (Assume the lease payments occur at the end of each month.) EXPLAIN AND MENTION COMPLETE EXCEL FORMULAS. DO...

Diverse Leasing leased a car to a customer. Diverse will receive $160 a month for 72 months. Requirements 1. What is the present value of the lease if the annual interest rate in the lease is 4% ?...

Diverse Leasing leased a car to a customer. Diverse will receive $160 a month for 72 months Requirements 1. What is the present value of the lease if the annual interest rate in the lease is 4% ? Use...

Wesson Leasing leased a car to a customer Wesson will receive $225 a month at the end of each month for 60 months Use the PV function in Excel to calculate the answers to the following questions 1....

A motorcycle has a velocity of 15 m/s, due south as it passes a car with a velocity of 24 m/s, due north. What is the magnitude and direction of the velocity of the motorcycle as seen by the driver...

Calculate PVGO and PVEO given the following information: ROE1 = 20%; ROE2 = 25%; further investment (Inv) = $100; BVPS = $10; and Ke = 10%. Is this firm a star? If not, what is it according to Boston...

Find the Taylor polynomial T , ( x ) for the function f centered at the number a . f ( x ) = 1 1 tan ^ - 1 ( x ) , a = 1 T 3 ( x ) = ?

substitution. addition. neutralization. combustion. Identify the type of reaction: CH3-CH2-CH2-CH2-CH3 + 8O2 5CO2 + 6H2O+ energy

Please make sure to display your thought process? It is imperative to be able to follow how the answer was deduced. Please be as thorough as possible. Please address all parts of this question as...

Think any business which you want to be in future and draw and explain the PLC of your business product and why PLC is important for your business?

what is the Internal Revenue Code for this following Code for Salary Unemployment compensation - state for New Jersey Unemployment compensation federal under the Federal Stimulus bill Freelance...

substitution. addition. neutralization. combustion. Identify the type of reaction: CH3-CH2-CH2-CH2-CH3 + 8O2 5CO2 + 6H2O+ energy

As a PMP candidate, you must understand the provisions of project procurement even if your typical projects do not include procurements. Based on the information in this chapter, a contract cannot...

Towne Architects incorporated as licensed architects on April 1, 2012. During the first month of the operation of the business, these events and transactions occurred: Apr. 1 Stockholders invested...

This is the trial balance of Mimosa Company on September 30. The October transactions were as follows.Oct. 5 Received $1,300 in cash from customers for accounts receivable due.10 Billed customers for...

This trial balance of Michels Co. does not balance. Each of the listed accounts has a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors:1....

We are evaluating a project that costs $724,000, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected...

Profits of the business are "passed on" (taxed to the individual) in which of the following business arrangements: Sole Proprietorship Partnership Limited Partnership Limited Liability Partnership...

A pawnshop will lend $6,500 for 45 days at a cost of $25 interest. What is the effective rate of interest? (Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent...