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Calculate the total lease payments

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Question - Anumpa Ltd leased an item of Machinery from Imlie Ltd for a period of five years. The Machinery has a useful life of 12 years. There is no purchase option available at the end of the lease term. The monthly rental lease payment is $90,000 over the next five years. The following are additional details pertaining to the lease agreement:

Rent in advance $2,000

Term in years 5

Interest rate implicit 6%

Fair value of leased assets $5,500,000

PV of Lease Payments $4,500,000

Total lease payments ?

Required - Calculate the total lease payments.

Reference no: EM132940549

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