Calculate npv of all lease payments

Reference no: EM1344634

Annual payments of $50,000 paid at the beginning of each of the next five years (total of $250,000). What is the NPV of all lease payments?

year 1 NPV $50,000
year 2 NPV $48,972
year 3 NPV $47,964
year 4 NPV $46,978
year 5 NPV $46,012
Total: $239,925

Reference no: EM1344634

Questions Cloud

Find out the acceleration of the bucket : A hollow aluminium cylinder 20 cm deep has an internal capacity of 2.000 L at 20.00C. It is completely filled with turpentine and then warmed to 80.00C. (i) How much turpentine overflows? (ii) If it is then cooled back to 20.00 C, how far below th..

Evaluate the annual depreciation allowances : Find what initial cash outlay is required for the new machine? Round your answer to the nearest dollar and evaluate the annual depreciation allowances for both machines and compute the change in the annual depreciation expense

How far did the last car travel : A train is travelling up a 4.8^circ incline at a speed of 3.25m/s while the last car breaks free and begins to coast without friction.

What is the mass of each sphere : The wind exerts a force of 325N north on a sailboat, while the water exerts a force of 425 N west on the sailboat. Find out the magnitude and direction of the net force on sailboat.

Calculate npv of all lease payments : yearly payments of $50,000 paid at the starting of each of the next five years (total of $250,000). Calculate the NPV of all lease payments?

Describe in general terms how each option : Describe in general terms how each option could change a project's NPV and show the corresponding risk of each option, relative to what would have been estimated if the option had not been considered.

What is the magnitude of balls total displacement : A ball on a porch rolls 60cm to the porch's edge, drops 40cm, continues rolling on the grass, and eventually stops 80cm from the porch's edge. What is the magnitude of ball's total displacement, in centimeters.

Information about risk aversion : Risk aversion implies which some securities will go unpurchased in market even if a large risk premium is paid to investors.

Analysis of executive management team : Give a one to two page analysis summarizing the results to the executive management team of Omega.

User Account

All Pages