Home Insert Page Layout AC220 Unit Problems (2) - Excel Formulas Data Review View Get Add in h? My Addins - Recommended Search Help - Mh. al WW Table Illustrations Line Column Wir Table Recommended Prvot Tables Tables SIGN IN TO OFFICE Addis Maps PivotChart 3D Map Il Tours du so we can verify your subscription Charts e looks like your stored credentials are out of date. Please sign in s Sparklines Sign in (Hint: A bond's annual coupon divided by its price) 06. solution steps First, compute present value of lease payments Second, calculate PV of lease payments as a percentage to the fair market value. 06. The Classy Realty Corporation has just signed a 13 year lease on an asset with 18 year B life. The minimum leased payments are 14,400 per year and are to be discounted back to 9 the present at a 7 percent annual discount rate. The value of the property is $159,000. Calculate the present value of the lease payments as a percentage to the value of the 1 property. Should the lease be recorded as a capital lease or an operating lease. 42 (Hint: Under US accounting standards a capital lease is please which meets at least one 43 of four criteria: 1. "The PV of the lease payments equals or exceeds 90% of the total original 44 cost of the equipment or property") 45 90% of original cost of property? 47 97. In what way is investment Banking different from the role of Brokerage Companies? Unit 6 Problems Enter Type here to search