The current lease rates quoted by the First Leasing Ltd (FLL) on its lease contracts are: Rs 18/Rs 1.00 motstand Go R 125 Rs 1,000month for 3-year and 5-year terms respectively. While the monthly lease rentals in the year contract are payable in arrears, those for the 5-year contract are payable in advance. Assuming 10 per cent marginal cost of debt to the lessee.

Calculate the present values of the lease payments?

Answer rating: 100% (QA)

To calculate the present values of lease payments we need to use the formula for present va... View the full answer