The Lease on a New Office Requires an Immediate Payment

question 57

Multiple Choice

The lease on a new office requires an immediate payment of $24,000 plus $24,000 per year at the end of each of the next 10 years. At a discount rate of 14 percent, what is the present value of this stream of lease payments?

• A) $130,872
• B) $149,194
• C) $142,710
• D) $264,000

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