4. You've moved on from UNB and are now working as a financial analyst for Toronto Dominion Bank at their headquarters on Wellington Street in Hogtown. You've decided to rent a parking space in a garage off Wellington. Because you've agreed to a five-year lease, you've been given a deala mere $4000/year, which works out to a monthly fee that's rather reasonable for downtown Toronto. Still, $20,000 for parking over the life of the lease feels like a rather big bite in the butt, until you remember the time value of money! If the market portfolio is earning 8%, what are you actually paying for the five years in today's dollars? Keep in mind that the first payment is due immediately upon signing the contract (naturally). if you can use a timeline use it please.

Answer rating: 100% (QA)

Absolutely To calculate the present value of the fiveyear parking lease considering the first paymen... View the full answer