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

question 9

Multiple Choice

For the following lease,determine the minimum present value calculation for the lessor.
$$\begin{array} { | l | l | } \hline \text { Annual payment (due at end of year) } & \$ 32,000 \\\hline \text { Lease term } & 5 \\\hline \text { Incremental rate } & 11 \% \\\hline \text { Implicit rate (known to lessee) } & 9 \% \\\hline \text { Executory costs } & 10,000 \\\hline\end{array}$$

• A)81,310
• B)85,572
• C)118,269
• D)124,469

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