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Nata
1 month ago
13

Suddeth Corporation has entered into a 6 year lease for a building it will use as a warehouse. The annual payment under the leas

e will be $2,468. The first payment will be at the end of the current year and all subsequent payments will be made at year-ends. If the discount rate is 5%, the present value of the lease payments is closest to (Ignore income taxes.):
Business
1 answer:
harina [3.8K]1 month ago
6 0
The present value totals $13,153.15. This is computed based on the discounted cash flows over six years from an annual payment of $2,468 with a 5% discount rate.
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