What Is the Present Value of an Operating Lease That

question 20

Multiple Choice

What is the present value of an operating lease that involves payments of $8,000 per year (at the end of each year) for 12 years with no possibility of purchase at the end of the lease term.Assume that the firm is in the 35% marginal tax rate and the pre-tax cost of debt for the firm is 12%?

• A) $60,918.39
• B) $49,554.99
• C) $39,596.96
• D) $32,210.75

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Definitions:

Freud's Personality

Sigmund Freud's theory of personality, which includes the id, ego, and superego as the three primary components.

Cognitive-Social Learning Theories

Frameworks suggesting that people learn behaviors through observing others, imitating them, and seeing the consequences of these actions.

Personality

Personality encompasses the characteristic patterns of thoughts, feelings, and behaviors that make a person unique, and which persist over time and across situations.

Environmental Interaction

The process by which organisms engage with the surrounding physical and biological environment, affecting and being affected by it.