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In: Finance

Lease conversion from operating to corporation: A company has borrowing cost of about 4% in 2014...

Lease conversion from operating to corporation:

A company has borrowing cost of about 4% in 2014 and lease balance $4,300.

Year

Payment

Discount Factor

Present Value (4%)

Interest

Lease Obligation

Lease Balance

2013

$4,300

2014

0.9615

2015

0.9246

2016

0.8890

2017

0.8548

2018

0.8219

2019

0.7903

2020

0.7599

2021

0.7307

2022

0.7026

2023

0.6756

2024

0.6496

2025

0.9246

Please calculate the payment, discount factor, PV, interest, lease obligation and lease balance. (show work please)

Solutions

Expert Solution

jeff jeffy answered 1 year ago
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