In: Accounting
Mckoy Leasing leased a car to a customer. Mckoy will receive $325 a month, at the end of each month, for 60 months. Use the PV function in Excel Superscript ® to calculate the answers to the following questions
1. What is the present value of the lease if the annual interest rate in the lease is 12 %? (Do not round intermediary computations, but round your final answer to the nearest cent.)
2. What is the present value of the lease if the car can likely be sold for $5,000 at the end of five years? (Do not round intermediary computations, but round your final answer to the nearest cent.)