Building B: Lease for 2 5 years with annual lease payments of $ 7 2 , 0
Question:
Building B: Lease for years with annual lease payments of $ being made at the beginning of the year.
Building C: Purchase for $ cash. This building is larger than needed; however, the excess space can be sublet for years at a net annual rental of $ Rental payments will be received at the end of each year. Larkspur has no aversion to being a landlord.
Click here to view Table A PRESENT VALUE OF AN ORDINARY ANNUITY OF
Click here to view Table A PRESENT VALUE OF AN ANNUITY DUE OF
Calculate the net present value of three buildings, assuming a cost of funds. For calculation purposes, use decimal places as displayed in the factor table provided. Round final answers to decimal places, eg
Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso