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Present value of lease payments

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If I commit to 6 annual lease payment of $100,000.00 and the first payment due immediately What is the present value of the lease is the borrowing rate is 9% and it tax rate is 35%? The lease payments are tax deductible.

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The solution explains how to calculate the present value of lease payments.

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After tax amount is 100,000 X (1-0.35) = $65,000. The payments are an annuity and since they are made at the beginning of the period, it is annuity due. We are ...

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