The GAP Inc. discloses the following schedule to its fiscal 2018 (ended February 2, 2019) 10-K/report relating to its leasing to its leasing activities The aggregate minimum noncancelable annual lease payments under leases in effect on February 2, 2019, are as follows: Fiscal Year ($ millions) 2019 2020 2021 2022 2023 Thereafter 1,520 Total minimum lease commitments $5,935 $1,156 1,098 892 730 539 Compute the present value of GAP's operating leases using a 6% discount rate and round the remaining lease term to the nearest whole year. Round each answer to the nearest whole number. S million Present Value Year 1 $ 1.091 Year 2 977 ✓
The GAP Inc. discloses the following schedule to its fiscal 2018 (ended February 2, 2019) 10-K/report relating to its leasing to its leasing activities The aggregate minimum noncancelable annual lease payments under leases in effect on February 2, 2019, are as follows: Fiscal Year ($ millions) 2019 2020 2021 2022 2023 Thereafter 1,520 Total minimum lease commitments $5,935 $1,156 1,098 892 730 539 Compute the present value of GAP's operating leases using a 6% discount rate and round the remaining lease term to the nearest whole year. Round each answer to the nearest whole number. S million Present Value Year 1 $ 1.091 Year 2 977 ✓
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
Related questions
Question
![Analyzing and Interpreting Lease Footnote Disclosures
The GAP Inc. discloses the following schedule to its fiscal 2018 (ended February 2, 2019) 10-K/report relating to its leasing to its leasing activities.
The aggregate minimum noncancelable annual lease payments under leases in effect on February 2, 2019, are as follows:
Fiscal Year ($ millions)
2019
2020
2021
2022
2023
$1,156
1.098
892
730
539
Thereafter
1,520
Total minimum lease commitments $5,935
Compute the present value of GAP's operating leases using a 6% discount rate and round the remaining lease term to the nearest whole year.
Round each answer to the nearest whole number.
S million Present Value
$
Year 1
Year 2
Year 3
Year 4
Year 5
After 5
Check
$
1,091
977 ✔
749
578 ✔
403 ✓
1.136 x
4,934 x
You have correctly selected 5.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa23bf3c4-a836-4256-8312-25a75753cfd9%2F3d9a3d67-ee97-47e3-b2ea-5ac27cbff3eb%2F58jb16p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Analyzing and Interpreting Lease Footnote Disclosures
The GAP Inc. discloses the following schedule to its fiscal 2018 (ended February 2, 2019) 10-K/report relating to its leasing to its leasing activities.
The aggregate minimum noncancelable annual lease payments under leases in effect on February 2, 2019, are as follows:
Fiscal Year ($ millions)
2019
2020
2021
2022
2023
$1,156
1.098
892
730
539
Thereafter
1,520
Total minimum lease commitments $5,935
Compute the present value of GAP's operating leases using a 6% discount rate and round the remaining lease term to the nearest whole year.
Round each answer to the nearest whole number.
S million Present Value
$
Year 1
Year 2
Year 3
Year 4
Year 5
After 5
Check
$
1,091
977 ✔
749
578 ✔
403 ✓
1.136 x
4,934 x
You have correctly selected 5.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Essentials Of Investments](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260013924/9781260013924_smallCoverImage.jpg)
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
![FUNDAMENTALS OF CORPORATE FINANCE](https://www.bartleby.com/isbn_cover_images/9781260013962/9781260013962_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Essentials Of Investments](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781260013924/9781260013924_smallCoverImage.jpg)
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
![FUNDAMENTALS OF CORPORATE FINANCE](https://www.bartleby.com/isbn_cover_images/9781260013962/9781260013962_smallCoverImage.gif)
![Financial Management: Theory & Practice](https://www.bartleby.com/isbn_cover_images/9781337909730/9781337909730_smallCoverImage.gif)
![Foundations Of Finance](https://www.bartleby.com/isbn_cover_images/9780134897264/9780134897264_smallCoverImage.gif)
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
![Fundamentals of Financial Management (MindTap Cou…](https://www.bartleby.com/isbn_cover_images/9781337395250/9781337395250_smallCoverImage.gif)
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
![Corporate Finance (The Mcgraw-hill/Irwin Series i…](https://www.bartleby.com/isbn_cover_images/9780077861759/9780077861759_smallCoverImage.gif)
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education