What is the value of this 25 year lease? the first payment, Ask an Expert

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What is the value of this 25 year lease? The first payment, due one year from today is $2,000 and each annual payment will increase by 5%. The discount rate used to evaluate similar leases is 6.5%. (Round to the nearest dollar).

a. $24,361

b. $39,808

c. $40,000

d. $68,000

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M940140

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