Calculate the present value of the lease . Assignment Financial Accounting [5 points]Green Path Landscaping purchased equipment through a 5-year capitallease. Annual payments are $12,000, and the implicit interest rate is 6%.Calculate the present value of the lease (using PVA factor of 4.2124 for 5years at 6%). Round your answer.

Explanation of Present Value of an Annuity (PVA):The Present Value of an Annuity (PVA) represents…

Answered: Assignment Financial Accounting [5…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 21P

See similar textbooks

Similar questions

Round your answer to nearest $.
Assignment prblm
financial accounting 5 point assignment
Godo
Green Path Landscaping purchased equipment through a 5-year capital lease. Annual payments are $12,000, and the implicit interest rate is 6%. Calculate the present value of the lease (using PVA factor of 4.2124 for 5 years at 6%). Round your answer.
Answer
pls provide correct answer
Applying Time Value of Money Concepts Fulton Corporation purchases new manufacturing facilities and assumes a 10 year mortgage of $4 million. The annual interest rate on the mortgage is 5.5% and payments are due at the end of each yea a. Determine the mortgage payment that Fulton Corporation must make each year. Round to the nearest dollar. $ 0 b. Use Excel to prepare a mortgage amortization schedule for the 10 years. To access an Excel template, click the following link: mortgage amortization schedule C. At the end of the first year, what amount will Fulton include as "current maturities of long-term debt" on its balance sheet? Round to the nearest dollar. $ 0
Net advantage to leasing (NAL) ABC Corp is considering a leasing arrangement to finance some machinery it needs for the next 3 years. The depreciation schedule and salvage value are given below. It can borrow $5,000,000, the purchase price, at 10% and buy the machinery, or it can make 3 equal end-of-year lease payments of $2,100,000 each and lease them. The loan obtained from the bank is a 3-year simple interest loan, with interest paid at the end of the year (the loan will be repaid in full in 3 years). The firm's tax rate is 40%. Annual maintenance costs associated with ownership are estimated at $250,000 (paid at the end of the year), but this cost would be borne by the lessor if it leases. What is the net advantage to leasing (NAL)?
pts You recently bought a single-family investment property for $276,000 with a fixed interest rate mortgage loan with an initial balance of $125,000, 3.55% annual nominal interest rate, and a 10-year fully amortizing loan term. Cash flow after debt service and before tax is estimated to be as follows: Year 1: $6,500 Year 2: $6,750 Year 3: $7,000 You expect a three-year holding period and that you'll be able to sell the investment for $300,000 three years from today. What do you estimate for the leveraged before tax IRR and how IRR is partitioned between cash flow from operations and cash flow from the sale? Use annual compounding or discounting to solve this problem. 5.20% with cash flow from operations representing 6.63% and cash flow from the sale representing 93.37% 5.20% with cash flow from operations representing 93.37% and cash flow from the sale representing 6.63% 15.29% with cash flow from operations representing 10.12% and cash flow from the sale representing 89.88% 15.29%…
A7
Homework 1 of Chapter 15. Q1. Python Company leased equipment from Hope Leasing on January 1, 2020. Hope recently purchased the equipment at a cost of $222,664. Other information: Lease term Annual payments Life of asset Fair value of asset 3 years $80,000 on January 1 each year 3 уears $222,664 8% 8% Implicit interest rate Incremental rate There is no expected residual value. Required: 1) Show how Hope determined the $80,000 annual lease payments. Fair Value: 3 aaa, o loH - Present Valuee 2) Prepare appropriate journal entries for Hope for 2020 and 2021. Round your answers to the nearest whole dollar amounts. Prepare an amortization schedule for Hope. Outstanding Balance (lease receivable) 222. tolo4 Effective Interest Revenue Decrease in Balance Date Cash Payments 1/1/2020 1/1/2020 12/31/2020 12/31/2021 80.000 80.000 $0.000 gross lease investment

SEE MORE QUESTIONS

Recommended textbooks for you

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS

Assignment Financial Accounting [5 points] Green Path Landscaping purchased equipment through a 5-year capital lease. Annual payments are $12,000, and the implicit interest rate is 6%. Calculate the present value of the lease (using PVA factor of 4.2124 for 5 years at 6%). Round your answer.