What Is the Present Value of an Operating Lease That

question 26

Multiple Choice

What is the present value of an operating lease that involves payments of $12,000 per year (the end of the year) for 14 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 9%?

• A) $73,179.04
• B) $93,433.80
• C) $60,731.97
• D) $112,583.13

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Definitions:

Infants

Young children from birth to one year of age, a critical period for developmental milestones.

Caregivers

Individuals who provide care to others, often family members or clients, who need assistance with daily tasks.

Secure Attachment

The attachment style for most infants, who are confident enough to play in an unfamiliar environment as long as the caregiver is present and are readily comforted by the caregiver during times of distress.

Infants

Very young children, typically under one year of age, who are in the earliest stage of human development.