What amount will this new lease increase the amount gap

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Question 1. What is the Present Value of a $1,000,000 30-year U.S. Treasury Bond discounted at 3%?

Question 2. What is the Present Value of a $10,000 6-year Annuity Due discounted at 8%?

Question 3. Gap Stores has just leased retail space from your firm (which owns a mall) for $1,440,000 per year for 12 years. Rent for the year ahead must be paid at the beginning of each year. Gap Stores uses a 6% discount rate for accounting purposes. By what amount will this new lease increase the amount Gap Stores must show on its Balance Sheet as "Long Term Lease-Related Liabilities"?

Reference no: EM133475019

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