Janu 1₁ mpany signed a -yea acquis onthly lease payments of $3,600, based on an annual interest rate of 12% are to be nuary 1, beginning with January 1, 2020. Compute the present value of the minim ABC Company for the capital lease. Following are appropriate factors from Present value of: Table Present Value of n annuity due $1 2.69005 30.40858 2%/3 _%/36 Guine Present Value of ordinary annuity of $1 2.40183 30.10751 .07379 .69892
Janu 1₁ mpany signed a -yea acquis onthly lease payments of $3,600, based on an annual interest rate of 12% are to be nuary 1, beginning with January 1, 2020. Compute the present value of the minim ABC Company for the capital lease. Following are appropriate factors from Present value of: Table Present Value of n annuity due $1 2.69005 30.40858 2%/3 _%/36 Guine Present Value of ordinary annuity of $1 2.40183 30.10751 .07379 .69892
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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On January 1, 2020, ABC Company signed a three-year lease for the acquisition of equipment. Monthly lease payments of $3,600, based on an annual interest rate of 12% are to be made every January 1, beginning with January 1, 2020. Compute the
Transcribed Image Text:On January 1, 2020, ABC Company signed a three-year lease for the acquisition of equipment.
Monthly lease payments of $3,600, based on an annual interest rate of 12% are to be made every
January 1, beginning with January 1, 2020. Compute the present value of the minimum lease payments
for ABC Company for the capital lease. Following are appropriate factors from tables:
Table Present Value of
% nannuity due $1
2.69005
30.40858
12%/3
1%/36
Required Computation:
Present Value of
ordinary annuity of $1
2.40183
30.10751
Present value of $1
.07379
.69892
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