Cybertrex, a manufacturing facility, leased new equipment on January 1 and agreed to pay an annual lease fee of $18,000 at the end of the next 10 years. The company's weighted average cost of capital is 8%. The 10-year 8% present value of $1 is 0.46319. The present value of a 10-year 8% annual dollar of $1 is 6.71008. 

What is the present value of lease payments over 10 years?

Answer rating: 100% (QA)

To calculate the present value of lease payments over 10 years we can use the formu... View the full answer