Lease Illustration #4
Question: What type of lease is this to the lessor? lessee? More importantly WHY?
Question: What type of present value (PV) situation is this? Single sum &/or annuity? ordinary or due?
Calculations: A (or periodic rental)
Cost asset $90,000
less PV of RV $7,513 n = 3, i = 10%
Amount to be recovered
by lessor $82,487
PVMLP = A(PVIF,annuity) n = 3, i = 10%
$82,487 = A ( 2.48685)
A = $33,169