Assume Fortune Brands, Inc., reports the following footnote relating to its leased facilities in its 2016 10-K report. Future minimum rental payments under noncancelable operating leases as of December 31, 2016 are as follows: (In millions) 2017.. 2018. 2019. 2020. 2021. Remainder. Total minimum rental payments.. Compute the present value of these operating leases using a discount rate of 7% and round the remaining lease life to the nearest whole year. Select one: O O O $ 45.6 33.5 26.9 20.2 15.7 37.3 $179.2 A. $179.2 million B. $140.7 million C. $127.3 million D. $154.9 million
Assume Fortune Brands, Inc., reports the following footnote relating to its leased facilities in its 2016 10-K report. Future minimum rental payments under noncancelable operating leases as of December 31, 2016 are as follows: (In millions) 2017.. 2018. 2019. 2020. 2021. Remainder. Total minimum rental payments.. Compute the present value of these operating leases using a discount rate of 7% and round the remaining lease life to the nearest whole year. Select one: O O O $ 45.6 33.5 26.9 20.2 15.7 37.3 $179.2 A. $179.2 million B. $140.7 million C. $127.3 million D. $154.9 million
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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Transcribed Image Text:Assume Fortune Brands, Inc., reports the following footnote relating to its leased facilities in its 2016 10-K report.
Future minimum rental payments under noncancelable operating leases as of December 31, 2016 are as follows:
(In millions)
2017..
2018.
2019.
2020.
2021.
Remainder.
Total minimum rental payments..
Compute the present value of these operating leases using a discount rate of 7% and round the remaining lease life to the nearest whole year.
Select one:
O
O
O
$ 45.6
33.5
26.9
20.2
15.7
37.3
$179.2
A. $179.2 million
B. $140.7 million
C. $127.3 million
D. $154.9 million
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