In the second worksheet (Data and working) you will find data on your companys leases in columns A to N. These are all leases your company has entered into as a LESSEE.

Using the data on the characteristics of the leases provided, you are required to classify the leases for your company as either operating or finance leases.

The yellow columns (P,Q,S,U,V,W,X,Y,AA) are suggested columns for you to use to insert formulas to enable you to classify the leases using the five lease criteria.

Your goal is to use formulas (or other methods) to automate this lease classification process. This should be an automated and dynamic process. So, if some of the input data in columns B to N is changed, this would result in changes to the necessary calculations, lease classification criteria and the final lease type.

The more this lease classification process is automated, the better grade you will receive on this assignment. Hint: for Columns P and Q, look at the present value tables in Chapter 6 of your textbook. At the top of each table is the formula to calculate the present value factors. Try writing your Excel formulas on paper first so that you get all the parenthesis matched up correctly. After you put the formulas in, double check your answer to the numbers in the Chapter 6 tables to make sure you are calculating correctly.

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