The Lease on a New Office Requires an Immediate Payment

question 57

Multiple Choice

The lease on a new office requires an immediate payment of $24,000 plus $24,000 per year at the end of each of the next 10 years. At a discount rate of 14 percent, what is the present value of this stream of lease payments?

• A) $130,872
• B) $149,194
• C) $142,710
• D) $264,000

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Definitions:

Hydrotherapy Baths

Baths used for therapeutic purposes, utilizing water properties such as temperature and pressure to heal and relieve pain.

Paraffin Baths

A therapeutic treatment where hands or feet are dipped into melted paraffin wax to alleviate pain and stiffness.

Counter-Pressure

A technique used to relieve pain, especially during childbirth, involving the application of steady pressure to specific body parts.

Muscle Strength

The ability of a muscle or group of muscles to exert force against resistance.