A property is currently leased for $100,000 p.a. with fully recoverable outgoings. The lease has 3 years to run on the current (fixed) rent. The market rent for the property is $120,000. What is the current value of the property subject to the lease at a yield of 8% ? Assume rents are paid annually in arrears.
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- Land is leased in perpetuity at $1500 due at the beginning of each month. If money is worth 12% compounded monthly, what is the present value of the lease?An asset with a cost of $80,000 is leased on 1/1/x1. The lease is a sales-type lease for the lessor. Six annual lease payments are due on December 31 beginning on 12/31/x1. The asset will have no residual value. The lessor sets a rate of return of 8% and charges the lessee annual lease payments of $20,550. Present value factor of an ordinary annuity for six years at 8% 4.62288 Present value factor of an annuity due for six years at 8% 4.99271 Present value factor of a single sum for a six-year term at 8% .63017 In the journal entry at the inception of the lease under the gross method, what amount does the lessor credit to unearned interest? Group of answer choices A. $28,300 D. $43,300 B. $95,000 C. $123,300Ajax Capital has determined that the amount to be amortized on a security system is $240,000. What annual lease payment must Ajax (lessor) require from the lessee if the required rate of return is 18%? Assume that the lease payments will be made at the beginning of each of the 5 years of the lease agreement and that the marginal tax rate is 30%.
- A property development agreement valued at $47,000 requires annual lease payments of $7,500. The first payment is due three years after the date of the agreement and interest is 9% compounded monthly. For how long will payments be made? The payments will be made forO vear(s) and O month(s). (Type whole numbers.)A vehicle can be purchased by paying $18,000 now, or it can be leased by paying $515 per month for the next three years, with the first payment due on the day of signing the lease. What nominal annual rate of interest compounded monthly is charged on the lease?The term of a lease contract are as follows: Annual lease = ₱ 1.50M, first payment upon start of the lease, annual lease increase by 10% each year for 4 years. A single lump sum payment is acceptable atthe start of the lease based on an interest rate of 15 % compounded quarterly. Find the amount of this lump sum.
- A contract requires lease payments of $800 at the beginning of every month for 6 years. a. What is the present value of the contract if the lease rate is 4.25% compounded annually? $0.00 Round to the nearest cent b. What is the present value of the contract if the lease rate is 4.25% compounded monthly? $0.00 Round to the nearest centA lease agreement valued at $33,000 requires payment of $4,300 every three months in advance. The payments are deferred for three years and month is worth 10% compounded quarterly.a. How many lease payments are to be made under the contract?b. What is the size of the final lease payment?what is the present value of a 12-year lease agreement with the interest of 7.5% that requires annual payments of 4,250 per year with 1st payment due now?
- What is the nominal annual rate of interest compounded monthly on a lease valued at $28,999.00 if payments of $3000.00 are made at the beginning of every 6 months for 5 years?3. the information below relates to a sales type lease in which lease payments are made semiannually at the beginning of each period Lease term Lessor's desired rate of return Lesse's incremental borrowing rate Current fair market value of leased asset 5 years 12% per year 10% per year $600,000 Based on the information above, calculate the amount of the semi-annual payment as determined by the lessor.An investor has the opportunity to buy a long-term sub-lease contract that calls for 20 semi-annual payments of $18,000 each. Payments on the sub-lease are to be made at the beginning of each semi- annual period, commencing on the date that the leasehold interest is purchased. The investor desires a minimum yield of 6% per annum, compounded annually. 7. What type of annuity is described by the above facts? (1) Ordinary simple annuity (2) General annuity due (3) Simple annuity due (4) Ordinary general annuity