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

question 21

Multiple Choice

For the following lease,determine the minimum present value calculation for the lessor.
$$\begin{array} { | l | l | } \hline \text { Annual payment (due at end of year) } & \$ 22,000 \\\hline \text { Lease term } & 5 \\\hline \text { Incremental rate } & 10 \% \\\hline \text { Implicit rate (unknown to lessee) } & 8 \% \\\hline \text { Unguaranteed residual value } & \mathrm { NA } \\\hline \text { Bargain purchase option } & 5,000 \\\hline\end{array}$$

• A)86,502
• B)91,243
• C)95,816
• D)101,451

Understand the economic ideologies of key historical figures and their impact on economic policy and systems.

Discuss the factors that contribute to the productivity and wealth of nations.

Identify the significance of the means of production in determining the nature of economic systems.

Understand the basic characteristics and features of a partnership form of organization, including liability, life, and accounting entity.

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