Kane Industries disclosed the following minimum rental commitments under non-cancelable operating leases in its 2014 annual report:

Minimum operating lease payments________ Amount (in millions)

2015……………………………………………………………$ 74

2016……………………………………………………………...48

2017……………………………………………………………...35

2018……………………………………………………………...27

2019……………………………………………………………...22

Thereafter………………………………………………………..19

Total…………………………………………………………...$225

What is the present value of these operating lease payments, assuming a 6% discount rate?

A) $193 million

B) $179 million

C) $ 70 million

D) $225 million

E) None of the above, the present value is actually $__________________.

Answer rating: 100% (QA)

Year Lease Payments Discount rate 6 PV 20... View the full answer