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

---

Definitions:

Frustrated

In legal terms, it refers to a contract or agreement that has become impossible to execute as initially intended due to unforeseen circumstances.

Antique Japanese Sword

A traditional and historical Japanese sword, such as a katana, that is of significant age, valued for its craftsmanship and historical importance.

Fencing Foil

A lightweight sword used in the sport of fencing, characterized by its flexible, rectangular blade and a blunted or covered tip to prevent injury.

Material Alteration

A significant change to a document that affects its legal meaning or effect, often rendering it void if done without consent from all parties involved.