A leasing contract calls for an immediate payment of $119,000 and nine subsequent $119,000 semiannual payments...
A leasing contract calls for an immediate payment of $119,000 and nine subsequent $119,000 semiannual payments at six-month intervals. What is the PV of these payments if the annual discount rate is 14%?
Homework Answers
The present value of these payments is calculated using the PV function as follows:-
=PV(rate,nper,pmt)+initial cost
=PV(14%/2,9,-119000)+119000
=894312.64
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A leasing contract calls for an immediate payment of $119,000
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and nine subsequent $119,000 semi-annual payments at six-month
intervals. What is the PV of these payments if the annual discount
rate is 14%?
A leasing contract calls for an immediate payment of $119,000 and nine subsequent $119,000 semiannual payments at six-month intervals. What is the PV of these payments if the annual discount rate is 14%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Present value...
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