For the following lease,determine the minimum present value calculation for the lessee.
$$\begin{array} { | l | l | }
\hline \text { Annual payment (due at end of year) } & \$ 23,104 \
\hline \text { Lease term } & 5 \
\hline \text { Incremental rate } & 10 \% \
\hline \text { Implicit rate (unknown to lessee) } & 8 \% \
\hline \text { Unguaranteed residual value } & \mathrm { NA } \
\hline \text { Guaranteed residual value } & 20,000 \
\hline
\end{array}$$
A)75,164
B)78,636
C)100,001
D)105,859

Question

For the following lease,determine the minimum present value calculation for the lessee.
$$\begin{array} { | l | l | } 
\hline \text { Annual payment (due at end of year) } & \$ 23,104 \
\hline \text { Lease term } & 5 \
\hline \text { Incremental rate } & 10 \% \
\hline \text { Implicit rate (unknown to lessee) } & 8 \% \
\hline \text { Unguaranteed residual value } & \mathrm { NA } \
\hline \text { Guaranteed residual value } & 20,000 \
\hline
\end{array}$$
A)75,164
B)78,636
C)100,001
D)105,859

Quizplus · Accepted Answer

The Answer of For the following lease,determine the minimum present value calculation for the lessee.
$$\begin{array} { | l | l | } 
\hline \text { Annual payment (due at end of year) } & \$ 23,104 \
\hline \text { Lease term } & 5 \
\hline \text { Incremental rate } & 10 \% \
\hline \text { Implicit rate (unknown to lessee) } & 8 \% \
\hline \text { Unguaranteed residual value } & \mathrm { NA } \
\hline \text { Guaranteed residual value } & 20,000 \
\hline
\end{array}$$
A)75,164
B)78,636
C)100,001
D)105,859

For the Following Lease,determine the Minimum Present Value Calculation for the Lessee