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.
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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.
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- Compute the interest paid on a 3-year lease for a $29,321 car if the annual rate of depreciation is 13% and the lease's annual interest rate is 4.1%. Round your answer to the nearest dollar.show how to calculate on a baII plusUsing the information provided, what transaction represents the best application of the present value of an annuity due of $1? A. Falcon Products leases an office building for 8 years with annual lease payments of $100,000 to be made at the beginning of each year. B. Compass, Inc., signs a note of $32,000, which requires the company to pay back the principal plus interest in four years. C. Bahwat Company plans to deposit a lump sum of $100.000 for the construction of a solar farm In 4 years. D. NYC Industries leases a car for 4 yearly annual lease payments of $12,000, where payments are made at the end of each year.
- Compute the interest paid on a 3-year lease for a $29,320 car if the annual rate of depreciation is 20% and the lease's annual interest rate is 3.7%.McGee Leasing leased a car to a customer. McGee will receive $300 a month,at the end of each month, for 36 months. Use the PV function in Excel® to calculate the asnwers to the following questions1. What is the present value of the lease if the annual interest rate in the lease is 18%?2. What is the present value of the lease if the car can likely be sold for $6,000 at the end ofthree years?Find the interest paid on a 3-year lease for a $26,765 car if the car depreciates at an annual rate of 10% and the lease has an annual interest rate of 4.8%.
- A manufacturer can lease a machine for 7 years at $3,000 per quarter, payable at the beginning of each quarter. Alternatively, they can purchase the machine for $78,000 and sell it for $8,700 in 7 years. The cost of capital is 6.2% compounded annually. a. What is the present value of the cost: (enter a positive value accurate to the nearest dollar) i) of the lease option? $ ii) of the purchase option? $ b. Should the manufacturer purchase or lease? O Purchase since Purchase PV is higher than Lease PV O Lease since Lease PV is higher than Purchase PV O Lease since Purchase PV is lower than Lease PV O Purchase since Lease PV is lower than Purchase PV Lease since Lease PV is lower than Purchase PV Purchase since Lease PV is higher than Purchase PV Submit QuestionCompute the monthly payments on a 3-year lease for a $29,128 car if the annual rate of depreciation is 19% and the lease's annual interest rate is 3.8%. Round your answer to the nearest dollar. Compute the interest paid on a 2-year lease for a $29,372 car if the annual rate of depreciation is 12% and the lease's annual interest rate is 4.9%. Round your answer to the nearest dollar.A user has an option to renew a lease on 10,000 square feet at a rate of $8 per square foot for five years. The current market rate is $10 per square foot. What is the value of the user's leasehold interest at 10 percent?
- Northwest Bank has been asked to purchase and lease to Fafner Construction equipment that costs $1,500,000. The lease will run for eight years. If Northwest seeks a minimum return of 10 percent, what will be the required lease payment? Assume there is no residual value. Use Appendix D to answer the question. Round your answer to the nearest cent. $Ajax 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%.Your firm plans on purchasing an existing rental property with a remaining service life of 30 years. Recently, the tenants signed a 5-year lease, fixing the rental income at $300,000 for the next five years. Rental income is expected to increase by 5% every five years over the remaining life of the property. Based on this increase, the annual rental income would be $315,000 for years 6 through 10, $330,750 for years 11 through 15, $347,288 for years 16 through 20, $364,652 for years 21 through 25, and $382,884 for years 26 through 30. Operating expenses, including income taxes, are estimated be $70,000 for the first year increasing by $6,000 each year thereafter. At the end of the property service life, you expect selling the lot on which it stands for net amount of $550,000. Alternatively, you could invest in a mutual fund that earns at the rate of 10% per annum, what would be the maximum amount you would be willing to pay for the property at the present time?
