At the end of 2016, LeaseCo leases identical equipment, agreeing to pay $500,000 rent each year for

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At the end of 2016, LeaseCo leases identical equipment, agreeing to pay $500,000 rent each year for the next 10 years. The interest rate is 12%, and the present value of 10 payments of $500,000 discounted at 12% is $2,825,112 ($500,000 × 5.650223).

Where did the figure 5.650223 come from?

Related Book For answer-question

Intermediate Accounting Reporting and Analysis

ISBN: 978-1285453828

2nd edition

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

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Posted Date: May 15, 2023 01:44 AM

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At the end of 2016, LeaseCo leases identical equipment, agreeing to pay $500,000 rent each year for

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The figure 5650223 is the present value factor derived from the formula for calculating the pre... View the full answer

Intermediate Accounting Reporting and Analysis

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