Here are some inputs for a noncancellable lease arrangement: Semi-annual lease payment: $16,000 (used to determine...
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Here are some inputs for a noncancellable lease arrangement: Semi-annual lease payment: $16,000 (used to determine PMT) Implicit rate: 7.5% (used to determine I/Y maybe?) • Incremental borrowing rate: 7% (used to determine I/Y maybe?) Lease term: 4 years (used to determine N) Unguaranteed residual value: $15,000 (used to determine FV maybe?) Calculate the present value of the minimum lease payments from the viewpoint of both the lessor and the lessee: PV of the minimum lease payments (lessor): PV of the minimum lease payments (lessee): Here are some inputs for a noncancellable lease arrangement: Semi-annual lease payment: $16,000 (used to determine PMT) Implicit rate: 7.5% (used to determine I/Y maybe?) • Incremental borrowing rate: 7% (used to determine I/Y maybe?) Lease term: 4 years (used to determine N) Unguaranteed residual value: $15,000 (used to determine FV maybe?) Calculate the present value of the minimum lease payments from the viewpoint of both the lessor and the lessee: PV of the minimum lease payments (lessor): PV of the minimum lease payments (lessee):
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a Calculation of Present Value of the minimum lease payments from the viewpoint of lessor Implicit r... View the full answer
Related Book For
Construction accounting and financial management
ISBN: 978-0135017111
2nd Edition
Authors: Steven j. Peterson
Posted Date:
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