On January 1, 2016, Bob's Meat Market leased some equipment from another company. The lease contract calls for $12,000 annual payments for eight years, beginning on December 31, 2016.
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Required:
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Calculate the present value of the lease payments on January 1, 2016. Assume a 6% interest rate.
What will be an ideal response?
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| PVd | = C× Factor for PO = 8, i = 6% |
| = $12,000 × 6.209794 | |
| = $74,518 |
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What will be an ideal response?
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A. 21
B. 
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