The correct answer is: c)
Step 1: Calculate the Present Value of the lease:
PMT = $12,000; N = 7; I = 7.5%*
Therefore, PV = 63,559
*Note that we have to use the lower of the lease rate or the rate on the firm's general debt.
Step 2: Amortization Rate = 63,559/7 = 9,080
Step 3: Ending Book Value = 63,559 - 9,080 = 54,479
The correct answer is d. The value of a zero coupon bond is the present value of the lump-sum principal payment. There is ...
The correct answer is: b) Return on Assets = NI/Sales = Sales/Assets x NI/Sales
The correct answer is: A) Under the capitalized lease method, the lessee must treat the asset as if it was purchased with ...
The correct answer is: d) (I) is incorrect because if interest rates are expected to rise, banks will generally "increase" ...
- No results found.