calculate the capitalized value

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
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Question
10
Given the lease payments, terms remaining until the
leases expire, and discount rates shown in the
following table, calculate the capitalized value of each
lease, assuming that lease payments are made
annually at the end of eachyear.
Lease
Lease payment
Remaining term
Discount rate
A
$ 40,000
12 years
10%
В
120,000
12
C
9,000
18
14
D
16,000
3
9
E
47,000
20
11
Transcribed Image Text:Given the lease payments, terms remaining until the leases expire, and discount rates shown in the following table, calculate the capitalized value of each lease, assuming that lease payments are made annually at the end of eachyear. Lease Lease payment Remaining term Discount rate A $ 40,000 12 years 10% В 120,000 12 C 9,000 18 14 D 16,000 3 9 E 47,000 20 11
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