Time remaining:
Compute the present value of Costco's operating lease payments after 2015?

Business & Finance
Tutor: None Selected Time limit: 0 Hours

Compute the present value of Costco's operating lease payments, assuming a 5% discount rate, after  2015 and round the remaining lease term to the nearest whole year.

Future minimum payments

2015 = 111

Thereafter = 1,451

Jan 11th, 2015

There is no mention about the number of years. 

I have done it for 10 years' lease, 20 years' lease and 30 years' lease

The present values are as follows:

10              $11,315.24

20              $18,193.67

30              $22416.43

The formula supplied to excel is 

- pv(.05,10,-1451)+111 

- pv(.05,20,-1451)+111 

- pv(.05,30,-1451)+111 

Jan 11th, 2015

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Jan 11th, 2015
...
Jan 11th, 2015
May 25th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer