Question: On January 1 , 2 0 2 5 , Blue leases a building from Capital Leasing for 1 0 years with a monthly lease payment
On January Blue leases a building from Capital Leasing for years with a monthly lease payment of $ payable at the beggining of each month. The lease contract allows Blue to terminiate the lease after three years by paying a cancellation clause of $ At the start of the lease, Capital is reasonably certain that Blue will not continue the lease past three years. Ignore the time value of money, what is the total of Blue's lease payments that would be used in the present value test?
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