Question: A company has borrowing cost of about 4% in 2014 and lease balance $4,300 Operating Lease $400 Fiscal Year Capital Leases 2014 $25 2015

A company has borrowing cost of about 4% in 2014 and lease

A company has borrowing cost of about 4% in 2014 and lease balance $4,300 Operating Lease $400 Fiscal Year Capital Leases 2014 $25 2015 10 420 2016 380 -- 2017 350 2018 320 Thereafter 3,500 Year Payment Discount Present Interest Lease Lease Factor Value (4%) Obligation Balance 2013 $4,300 2014 0.9615 2015 0.9246 2016 0.8890 2017 0.8548 2018 0.8219 2019 0.7903 2020 0.7599 2021 0.7307 2022 0.7026 2023 0.6756 2024 0.6496 2025 0.9246 Instructions: [1] calculate the additional years of conversion from operating to capital [2] calculation the payment, discount factor, PV, interest, lease obligation and lease balance.

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