For these exercises, if you use present value tables, use the present value tables available

Note that the different methods may yield slightly different answers due to rounding. For all questions, please ignore income taxes. a) Suddeth Corporation has entered into a 6-year lease for a building it will use as a warehouse. The annual payment under the lease will be $2,468. The first payment will be at the end of the current year and all subsequent payments will be made at year-ends. If the discount rate is 5%, calculate the present value of the lease payments. b) How much would you have to invest today in the bank at an interest rate of 8% to have an annuity of $4,800 per year for 7 years, with nothing left in the bank at the end of the 7 years? c) At an interest rate of 14%, approximately how much would you need to invest today if you wanted to have $2,000,000 in 10 years?

EXHIBIT 14 B-2 Appendix 14B: Present Value Tables EXHIBIT 14 B-1 EXHIBIT 14 B-2 Appendix 14B: Present Value Tables EXHIBIT 14 B-1