Calculate the minimum lease payment

Reference no: EM1355693

Real estate, Inc., has purchased a building for $1 million. the economic life of the building is 30 years and it will be fully depreciated over the 30 years using the straight-line depreciation method. the discount rate is 14% and the coporate tax rate is 35%. assume there is no inflation. what is the minimum lease payment the company should ask for? assume that the lease payment is due immediately.

Reference no: EM1355693

Questions Cloud

What is the accounting equation : What is the Accounting Equation? Does it always have to balance, if so why? Are there exceptions to this general rule? If so, what are they?

Scandal at mf global : Consider the recent scandal at MF Global. Given the financial complexity of MF Global's business, were the most recent board members adequately qualified? Explain

Write a program to compute the probability : Write a program (or a peudocode) to compute the probability that at least 2 people have the same birthday, given there are 2, 3, 4,....,60 people in the room.

Convergence of ifrs and us gaap : Discuss the efforts made toward convergence of International Financial Reporting Standards (IFRS) and U.S. Generally Accepted Accounting Principles (GAAP) on the financial performance reporting by business enterprises.

Calculate the minimum lease payment : Real estate, Inc., has purchased a building for $1 million. the economic life of the building is thirty years and it will be fully depreciated over the thirty years using the straight line depreciation method.

Important characteristics of generally accepted accounting : Explain the important characteristics of Generally Accepted Accounting Principles or standards. Why are these characteristics of GAAP important?

Create a college course to display the course data : Create a CollegeCourse that does not include the lab fee. Then display the course data. Save the files as CollegeCourse.java, LabCourse.java, and UseCourse.java.

Allowance-direct write-off method : What is possible "consequence" of using the allowance method rather than the direct write-off method? The method fits the matching principle, is GAAP, the SEC likes it better, sounds better for investors, what could be bad?

Enormous global markets for standardized consumer products : The emergence of enormous global markets for standardized consumer products - What actions can a firm take to minimize its global tax liability? On ethical grounds cans such actions be justified?

User Account

All Pages