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Question 09020   The following details relate to the Lease agreement between JMK :Ltd ( Lessor ) and PJK ltd ( lessee )   Asset leased - Machinery   Annual lease payments = K20000   Lease term- 5 years   r - 10 %   Useful life of machinery = 10 years   Lease term - 8 years   Residue value - nil   Required – Calculate the present value of the MLP

Question 09020   The following details relate to the Lease agreement between JMK :Ltd ( Lessor ) and PJK ltd ( lessee )   Asset leased - Machinery   Annual lease payments = K20000   Lease term- 5 years   r - 10 %   Useful life of machinery = 10 years   Lease term - 8 years   Residue value - nil   Required – Calculate the present value of the MLP

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 09020

 

The following details relate to the Lease agreement between JMK :Ltd ( Lessor ) and PJK ltd ( lessee )

 

Asset leased - Machinery

 

Annual lease payments = K20000

 

Lease term- 5 years

 

r - 10 %

 

Useful life of machinery = 10 years

 

Lease term - 8 years

 

Residue value - nil

 

Required – Calculate the present value of the MLP

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