McGee Leasing leased a car to a customer. McGee will receive $300 a month,at the end of each month, for 36 months. Use the PV function in Excel® to calculate the asnwers to the following questions1. What is the present value of the lease if the annual interest rate in the lease is 18%?2. What is the present value of the lease if the car can likely be sold for $6,000 at the end ofthree years?

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A:

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Q: present value of lease payments?

A: Year 1 = 1/1.03 = 0.971 Year 2 = 1/(1.03)2 = 0.943 Year 3 = 1/(1.03)3 = 0.915 Year 4 = 1/(1.03)4=…

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A: P/Y 12 C/Y 12 N 4 I/Y   PV 26700 PMT 280 FV 0 BGN/END BGN

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Q: You are looking at a lease on a 2020 Chevy Impala. The lease is for 36 months with a 4.9% annual…

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Q: Compute the monthly payments on a 2-year lease for a $26,532 car if the annual rate of depreciation…

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Q: A lease valued at $18,000 requires payments of $1,813 at the beginning of every month. If money is…

A:

Q: One of the departments at Yolo Industries has entered into a 9 year lease for a piece of equipment.…

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Q: A luxury car can be leased for $679 per month for 36 months. Terms are first month’s lease payment,…

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Q: Katie secured a lease on a machine by paying $1,550 as a down payment and then $650 at the beginning…

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Q: A car can be purchased by paying $27 000 now or can be leased by paying $725 per month for the next…

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Q: A building owner is evaluating the following alternatives for leasing space in an office building…

A:

Q: You just leased a Honda Civic that sells for $25,350. The terms of your lease require you to make 60…

A: Formulas:

Q: Kyle secured a lease on a machine by paying $2,000 as a down payment and then $700 at the beginning…

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Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.