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Accounting

Problem:

Artest Lease leased a car. Artest will receive $300 a month for 60 months.

Required:

Question 1: What is the present value of the lease if the annual interest rate in the lease in 12%? Use the PV function in Excel to compute the present value.

Question 2: What is the present value of the lease if the car can be sold for $5,000 at the end of five years?

Note: Please provide through step by step calculations.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91163925

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