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Noncancelable lease at an annual rental of $45000 payable

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Question

State Repairs acquires equipment under a noncancelable lease at an annual rental of $45000 payable in advance for five years. After five years, there is a bargain purchase option of $75000. The appropriate interest rate is 12%. What is the total value of the elase and the first year's interest expense?

 

Paper#26220 | Written in 18-Jul-2015

Price : $27
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