Long-Term Debt The Company's noncancelable long-term leases generally include options to purchase at fair value and...

 

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Long-Term Debt The Company's noncancelable long-term leases generally include options to purchase at fair value and to extend the terms. Finance leases have been discounted at rates ranging from 3.09% to 14.26% and are collateralized by assets with a net book value of $398 million at December 31 of Year 8. Minimum commitments, exclusive of nonlease costs borne by the Company are: S millions Finance Leases Year 9 Year 10 $110 91 Year 11 72 Year 12 68 Year 13 62 Year 14 through Year 28 233 Total $636 Imputed interest on finance lease at an average rate of 8.4% Lease liability included in debt (168) $468 Required Provided that lease payments occur evenly throughout the year, estimate the decline in the finance lease liability in Year 8. Note: Do not use negative signs with your answer. Note: Round your answers to two decimal places. Decline in finance lease liability in Year 8 assuming payments occur at the end of the year: $ million. Decline in finance lease liability in Year 8 assuming payments occur at the beginning of the year: $ million. D Decline in finance lease liability in Year 8 assuming payments occur evenly throughout the year using the average of payments above: S million. Long-Term Debt The Company's noncancelable long-term leases generally include options to purchase at fair value and to extend the terms. Finance leases have been discounted at rates ranging from 3.09% to 14.26% and are collateralized by assets with a net book value of $398 million at December 31 of Year 8. Minimum commitments, exclusive of nonlease costs borne by the Company are: S millions Finance Leases Year 9 Year 10 $110 91 Year 11 72 Year 12 68 Year 13 62 Year 14 through Year 28 233 Total $636 Imputed interest on finance lease at an average rate of 8.4% Lease liability included in debt (168) $468 Required Provided that lease payments occur evenly throughout the year, estimate the decline in the finance lease liability in Year 8. Note: Do not use negative signs with your answer. Note: Round your answers to two decimal places. Decline in finance lease liability in Year 8 assuming payments occur at the end of the year: $ million. Decline in finance lease liability in Year 8 assuming payments occur at the beginning of the year: $ million. D Decline in finance lease liability in Year 8 assuming payments occur evenly throughout the year using the average of payments above: S million.