QUESTION 39 On January 1, 2020, ABC Company signed a three-year lease for the acquisition of equipment. Monthly lease payments of $2,000, based on an annual interest rate of 12% are to be made every January 1, beginning with January 1, 2020. Compute the present value of the minimum lease payments for ABC Company for the capital lease. Following are appropriate factors from tables: Table % / n Present Value of annuity due $1 Present Value of ordinary annuity of $1 Present value of $1 12%/3 2.69005 2.40183 .07379 1%/36 30.40858 30.10751 .69892 $72,000 $60,215.02 $60,817.16 $71,512.41
QUESTION 39 On January 1, 2020, ABC Company signed a three-year lease for the acquisition of equipment. Monthly lease payments of $2,000, based on an annual interest rate of 12% are to be made every January 1, beginning with January 1, 2020. Compute the present value of the minimum lease payments for ABC Company for the capital lease. Following are appropriate factors from tables: Table % / n Present Value of annuity due $1 Present Value of ordinary annuity of $1 Present value of $1 12%/3 2.69005 2.40183 .07379 1%/36 30.40858 30.10751 .69892 $72,000 $60,215.02 $60,817.16 $71,512.41
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter7: Financial Activities
Section: Chapter Questions
Problem 1AIC
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QUESTION 39
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On January 1, 2020, ABC Company signed a three-year lease for the acquisition of equipment. Monthly lease payments of $2,000, based on an annual interest rate of 12% are to be made every January 1, beginning with January 1, 2020. Compute the present value of the minimum lease payments for ABC Company for the capital lease. Following are appropriate factors from tables:
Table
% / n
Present Value of annuity due $1
Present Value of ordinary annuity of $1
Present value of $1
12%/3
2.69005
2.40183
.07379
1%/36
30.40858
30.10751
.69892
$72,000
$60,215.02
$60,817.16
$71,512.41
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