Round dollar amounts to TWO decimal places.John leases a car priced at $20,373 with a contract that requires start-of-week payments of$64.15 for 4 years at 3.56% compounded weekly.a) What is the residual value of the car at the end of the lease?ModeA N=PV =FV =b) How much will John pay in total for leasing the car (without the residual value)?Total paid =

Lease refers to a contract between two parties under which one party who is the real owner of an…

Answered: a) What is the residual value of the…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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TRUE OR FALSE:The average annual rental payments shall be recognized as rent receivable. If false, why?
None
If the agreement type is NNN lease then why tenant are not paying their share of CAM, taxes and insurance expenses in this solution ? How to calculate Sale price in excel?
When is it appropriate for the lessee to use the lessor's implicit rate to calculate the present value of the lease payments? A.when the lessee's incremental borrowing rate is lower than the lessor's rate B.whenever the lessee knows what the lessor's rate is C.when the lessor's implicit rate is lower than the lessee's incremental borrowing rate D.when the lessor's rate is higher than the lessee's incremental borrowing rate
What formula do I utilize to find out the annual net revenue I'll receive for a property? For example, If I were to purchase a commercial property for $8,950,000 with an interest rate of 3.5% and a term of 30 years. I put down 25% which is $2,237,500, which would make my loan amount equate to $6,712,500. This particular commercial real estate property has a NOI (Net Operating Income) of $494,040yr, the debt service is $361,705yr, and the cashflow is $132,335yr. Would my net revenue equate to $494,040yr or $132,335yr?
For which of the following conditions will the lessor classify a lease as a sales-type lease? a.The leased asset may be exchanged for a similar asset during the lease term. b.The present value of the sum of the lease payments is equal to or more than the fair value of the underlying asset. c.The lease term is less than one year. d.The lease term is half of the underlying asset’s economic life.
A finance lease asset is depreciated over its useful life when the lessee guarantees all of the asset's salvage value expected at the end of the lease term. O True False
A buyer has agreed to purchase a home for $50,500. The buyer will assume a first mortgage in the amount of $32.200, will deposit $2.200 as earnest money, will deposit $5,600 in cash at cosing, and wl give the sellet a purchase- money mortgage for the balance. What is the amount of the purchase-money mortgage? a)$24,400 b)$18,300 c)$16,100 d)$10,500
Which of the following is nota reason why some companies lease rather than buy? A. Leasing may allow you to borrow with little or no down payment. B. Leasing can improve the balance sheet by reducing long-term debt. C. Leasing can lower income taxes. D. Leasing transfers the title to the lessee at the beginning of the lease.
Complete this question by entering your answers in the tabs below. Req 1 to 3 and 5 Req 4 Req 6 Req 7 Req 8 Req 9 Req 10 Req 11 1. How should this lease be classified by Yard Art Landscaping (the lessee)? 2. Calculate the amount Yard Art Landscaping would record as a right-of-use asset and a lease liability. 3. How should this lease be classified by Branch Motors (the lessor)? 5. Calculate the amount Branch Motors would record as sales revenue. Note: Round your intermediate and final answers to nearest whole dollar. 1. This lease should be classified by Yard Art as a 2. The amount that Yard Art would record as a right-of-use asset and a lease liability would be 3. This lease should be classified by Branch Motors as a 5. The amount that Branch Motors would record as sales revenue would be Show less▲
pls help
Why do person choose to buy on lease?

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a) What is the residual value of the car at the end of the lease? Mode N = PV = FV = b) How much will John pay in total for leasing the car (without the residual value)? Total paid =