Wrench Repairs acquires equipment under a noncancelable lease at an annual rental of $45,000, payable in advance for five years. After five years, there is a bargain purchase option of $75,000 . The appropriate interest rate is 1 . percent. What is the total present value of the lease and the first year's interest expense?
a. $224,234 and $26,908
b. $224,234 and $21,508
c. $204,771 and $21,508
d. $204,771 and $19,173
B
You might also like to view...
Great Plains Credit Union has decided that tellers must rotate through a new weekend shift on Saturday afternoons since several of its competitors in the area have recently begun to offer these hours to customers. This is a(n) ______ change.
A. radically innovative B. innovative C. adaptive D. proactive E. reactive
Which procedure will prevent two end users from accessing the same data element at the same time?
a. data redundancy b. data replication c. data lockout d. none of the above
A control chart shows ______.
A. the reason a process is out of control B. the time period when the process became out of control C. the costs that result when a process is out of control D. the costs that result when a process does not meet customer specifications
How does marketing research help managers make decisions?
What will be an ideal response?