Present and Future Value Tables of $1 at 3% Are

question 122

Multiple Choice

Present and future value tables of $1 at 3% are presented below:

-A firm leases equipment under a long-term lease (analogous to an installment purchase) that calls for 12 semiannual payments of $39,014.40. The first payment is due at the inception of the lease. The annual rate on the lease is 6%. What is the value of the leased asset at inception of the lease?

• A) $388,349.
• B) $400,000.
• C) $454,128.
• D) $440,082.

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Definitions:

Weak Situation

A type of environmental context where norms, expectations, and roles are vague or ambiguous, leading to greater variability in individuals' behaviors.

Situationism

A theory within psychology that suggests human behavior is largely determined by the surrounding context or situation rather than by personal characteristics or traits.

Unstructured Conversation

A type of dialogue that does not follow a predetermined format or topic, allowing for free-flowing and spontaneous communication.

Dependable

Capable of being relied upon; showing reliability and consistency in actions and behavior.