What is the present value of payments you expect to receive

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Reference no: EM131981216

You have a fully outfitted deluxe party bus that you have arranged to lease out to a group of alumni for year-around tailgating activities for $12,000 per year. The alums are optimistic about the Rams’ outlook and have signed a contract with you at this rate for the next 8 years. You determine that you face an opportunity cost of capital of 6% per year. What is the present value of the payments you expect to receive? (Demonstrate/describe how you got this value.

Reference no: EM131981216

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