Chaplin Leasing leased a car to a customer. Chaplin will receive $150 a month for 60 months.
Question:
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?
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Related Book For
Financial Accounting
ISBN: 978-0134127620
11th edition
Authors: Walter Harrison, Charles Horngren, William Thomas, Wendy Tietz
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