Your tutorial is in Excel (attached). Click in cells to see ...
Solution Summary
Your tutorial is in Excel (attached). Click in cells to see computations. Some books use "average assets" and "average debt" but I did not average here. I used 2008 amounts. I have attached the 2008 financial statements to the case file (page 2 & 3) so you can see where I got the amounts.
... assigned to prepare a written report to be presented to GMC's ... At the end of the lease term, the computer must be ... of the lease term, and 4. the present value of ...
...Operating leases are not. ... The present value of the periodic payments is computed at the discount rate and decreased by the principal payment component ...
...leasing arrangement including basis of computing contingent payments ... period for which an income statement is presented. ... Since the present value of minimum lease...
... yields a good estimate of the value of operating leases. ... significant difference is that the present value of capital lease payments is computed using the ...
...obligation at an amount equal to the present value of ... for him to learn the implicit rate computed by the ... In those cases when an operating lease with scheduled ...
... value of capital lease payments is computed using the ... The present value of the minimum lease payments, at the ... end of the term of an operating lease, you decide ...
... 2) What is the advantage of computing the present value ... (d) If the present value of ... capital leases recognize expenses sooner than equivalent operating leases. ...
... and simply uses the goods (eg, a computer system, or ... economic life of the asset, and the present value of ... a lease is classified as an operating lease no assets ...
