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

question 87

Multiple Choice

For the following lease,determine the minimum present value calculation for the lessee.
$$\begin{array} { | l | l | } \hline \text { Annual payment (due at end of year) } & \$ 23,104 \\\hline \text { Lease term } & 5 \\\hline \text { Incremental rate } & 10 \% \\\hline \text { Implicit rate (unknown to lessee) } & 8 \% \\\hline \text { Unguaranteed residual value } & \mathrm { NA } \\\hline \text { Guaranteed residual value } & 20,000 \\\hline\end{array}$$

• A)75,164
• B)78,636
• C)100,001
• D)105,859

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