Question: I realized my mistake; however, after making the correction, I am still doing something wrong. Please help! Year Cash inflows Discount factor present value 1
I realized my mistake; however, after making the correction, I am still doing something wrong. Please help!


| Year | Cash inflows | Discount factor | present value | ||
| 1 | 116,406 | 1.00000 | 116,406 | ||
| 2 | 116,406 | 0.94340 | 109,817 | ||
| 3 | 116,406 | 0.89000 | 103,601 | ||
| 4 | 116,406 | 0.83962 | 97,737 | ||
| 5 | 116,406 | 0.79209 | 92,204 | ||
| 6 | 116,406 | 0.74726 | 86,986 | ||
| At 6 years | 50,000 | 0.70496 | 35,248 | ||
| Total | 641,999 | ||||
| Year | Annual lease pmnts (A) | Interest on liability (B=D*6%) | Reduction in lease liability (C=A-B) | lease liability (D) | |
| 1/20/2020 | 0 | 0 | 0 | 641,999 | |
| 1/1/2020 | 116,406 | 0 | 116,406 | 525,593 | |
| 1/1/2021 | 116,406 | 31,536 | 84,870 | 440,723 | |
| 1/1/2022 | 116,406 | 26,443 | 89,963 | 350,760 | |
| 1/1/2023 | 116,406 | 21,046 | 95,360 | 255,400 | |
| 1/1/2024 | 116,406 | 15,324 | 101,082 | 154,318 | |
| 1/1/2025 | 116,406 | 9,259 | 107,147 | 47,171 | |
| 12/31/2026 | 50,000 | 2,830 | 47,170 | 1 | |
| 748,436 | 106,438 | 641,998 | 2,415,965 |
Your answer is partially correct. Current Attempt in Progress The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Shamrock Company, a lessee. The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment. Click here to view factor tables
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