(Appendix 8A)(Ignore income taxes in this problem. )Schaad Corporation has entered into an 8 year lease for a piece of equipment.The annual payment under the lease will be $2, 500, with payments being made at the beginning of each year.If the discount rate is 14%, the present value of the lease payments is closest to:
A)$20, 000
B)$7, 011
C)$17, 544
D)$14, 097

Question

Quizplus · Accepted Answer

$2, 500 × 1.000 + $2, 500 × 4.639 = $14, 097.50

(Appendix 8A)(Ignore Income Taxes in This Problem