Find the present value of the lease

Reference no: EM1344715

You are considering a five-year lease of office space for R&D personnel. Once signed, the lease cannot be canceled. It would commit your firm to six annual $100,000payments with the first payment due immediately. What is the present value of the lease if your company's borrowing rate is 9% and its tax rate is 35% (note: the lease payments would be tax-deductable)

Reference no: EM1344715

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