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Find the present value of the lease payments

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Question - (Ignore income taxes in this problem.) Latting Corporation has entered into a seven-year lease for a building it will use as a warehouse. The annual payment under the lease will be $4,781. The first payment will be at the end of the current year and all subsequent payments will be made at year-ends. If the discount rate is 6 percent, find the present value of the lease payments?

A) $26,688.

B) $22,257.

C) $31,573.

D) $33,467.

Reference no: EM132597888

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