Domebo Corporation Has Entered into a 9 Year Lease for a Piece

question 38

Multiple Choice

Domebo Corporation has entered into a 9 year lease for a piece of equipment. The annual payment under the lease will be $3,700, with payments being made at the beginning of each year. If the discount rate is 11%, the present value of the lease payments is closest to (Ignore income taxes.) :Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. (Round your intermediate calculations to 3 decimal places.)

• A) $33,300
• B) $10,350
• C) $22,719
• D) $22,740