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- what is the present value of a 12-year lease agreement with the interest of 7.5% that requires annual payments of 4,250 per year with 1st payment due now?What is the present value of a 12 year lease arrangement with an interest rate of 7.5% that requires annual payments of $4250 per year with the first payment being due nowWhat is the cash value of a three-year lease that require payments of $2097.64 payable at the beginning of each month for five years if interest is 10% compounded semi-annually?
- A manufacturer can lease a machine for 7 years at $3,000 per quarter, payable at the beginning of each quarter. Alternatively, they can purchase the machine for $78,000 and sell it for $8,700 in 7 years. The cost of capital is 6.2% compounded annually. a. What is the present value of the cost: (enter a positive value accurate to the nearest dollar) i) of the lease option? $ ii) of the purchase option? $ b. Should the manufacturer purchase or lease? O Purchase since Purchase PV is higher than Lease PV O Lease since Lease PV is higher than Purchase PV O Lease since Purchase PV is lower than Lease PV O Purchase since Lease PV is lower than Purchase PV Lease since Lease PV is lower than Purchase PV Purchase since Lease PV is higher than Purchase PV Submit QuestionAssuming the leasehold yield is 2% above the freehold yield, calculate the Years Purchase (YP) dual rate for 10 years if the accumulative rate is 3% and that a comparable freehold property let at full market rent of $40,000 has just been sold for $500,000. Hint: Analyse the market yield from the comparable first and then use it to calculate the required YP. 4.3872 7.3625 6.1250 5.3410Four-year lease agreement requires payments of P10000 at the beginning of everyyear. If the interest rate is 6% compounded monthly, what is the cash value of thelease?
- A contract has been signed to lease a building at P30, 000 per year with an annual increase of P1, 000 for 5 years. Payments are to be made at the end of each year from now. The prevailing interest rate is 7%. What is the lump sum paid today would be equivalent to the 5-year lease payment plan? whats the correct answer a. P130, 652.59 b. P142, 470.28 c. P137.952.69 d. P157, 609.38A manufacturer can lease a machine for 6 years at $3,680 per quarter, payable at the beginning of each quarter. Alternatively, they can purchase the machine for $76,000 and sell it for $8,700 in 6 years. The cost of capital is 9.1% compounded annually. a. What is the present value of the cost: (enter a positive value accurate to the nearest dollar) i) of the lease option? ii) of the purchase option? GA2. A four-year lease agreement requires payments of RM10, 000 at the beginning of every year. If the interest rate is 6% compounded yearly, what is the cash value of the lease?
- Imagine you leased a piece of equipment for three years. The lease required payments of $10,000 per year, due at the end of each year. Calculate the present value of each payment if the interest rate is 10%. Complete the following table: Present Value of Payment Payment $10,000 $10,000 $10,000 Year Year 1 (end of this year) Year 2 (end of next year) Year 3 (end of the following year) What is the total present value of all three payments?A contract has been signed to lease a building at Php. 200,000.00 per year with an annual increase of Php. 1,500.00 for 8 years. Payments are to be made at the end of each year, starting one year from now. The prevailing interest rate is 7%. What lump sum paid today would be equivalent to the 8-year lease payment plan?K What is the cash value of a lease requiring payments of $864.00 at the beginning of every year for 10 years, if interest is 4% compounded monthly? www