(Answered) For the next two years a lease is estimated to have an

Accounting

For the next two years, a lease is estimated to have an operating net cash inflow of $7,500 per annum, before adjusting for $5,000 per annum tax basis lease amortization, and a 40% tax rate. The present value of an ordinary annuity of $1 per year at 10% for two years is 1.74. What is the lease's after-tax present value using a 10% discount factor?

$ 2,610
$ 4,350
$ 9,570
$11,310

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Taxation, Accounting

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