For the Following Lease,determine the Minimum Present Value Calculation for the Lessor

question 36

Multiple Choice

For the following lease,determine the minimum present value calculation for the lessor.
$$\begin{array} { | l | l | } \hline \text { Annual payment (due at end of year) } & \$ 23,000 \\\hline \text { Lease term } & 5 \\\hline \text { Incremental rate } & 10 \% \\\hline \text { Implicit rate (known to lessee) } & 8 \% \\\hline \text { Unguaranteed residual value } & \mathrm { NA } \\\hline \text { Guaranteed residual value } & 25,000 \\\hline\end{array}$$

• A)91,832
• B)102,711
• C)105,444
• D)108,846

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Definitions:

Parathyroid Hormone

A critical regulator of serum calcium and phosphate concentration, influencing bone health by promoting calcium release from bones and absorption from the intestine.

Blood Calcium

The level of calcium in the blood, essential for various physiological processes including bone formation, muscle contraction, and blood clotting.

Humoral

Related to body fluids, especially regarding the immune response mediated by antibodies in the bloodstream.

Lipid-soluble Hormone

A hormone that can pass through the cell membrane and interact with internal receptors due to its ability to dissolve in lipids.