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8 May, 10:57

A firm leases equipment under a long-term finance lease (analogous to an installment purchase) that calls for 12 semiannual payments of $39,014.40. The first payment is due at the inception of the lease. The annual rate on the lease is 6%. What is the value of the leased asset at inception of the lease?

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  1. 8 May, 14:20
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    PVAD = $39,014.40 * 10.25262 * = $400,000

    *PVAD of $1: n = 12; i = 3%
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