On June 30, 2024, Exploration Inc. signs a lease requiring quarterly payments each year for the next
Question:
On June 30, 2024, Exploration Inc. signs a lease requiring quarterly payments each year for the next five years. Each of the 20 quarterly payments is $29,122.87, with the first lease payment beginning September 30. The company’s normal borrowing rate is 6%.
Required:
Calculate the present value of the lease payments and record the lease on June 30, 2024. Round to the nearest whole dollar.
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we would use the formula PV PMT x 1 1 rn r Where PV present value PMT payment in ...View the full answer
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