What Is the Present Value of a 10-Year Lease with Monthly

question 3

Multiple Choice

What is the present value of a 10-year lease with monthly rental payments of $2000 due at the beginning of each month, if the opportunity cost of capital is 8%?

• A) $161,042.
• B) $164,843.
• C) $165,942.
• D) Insufficient information to answer the question.

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