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November 21, 2015 at 5:48 pm #284376
mabs6601
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As we are paying in start of the each year so 1st year lease will be paid in year 0. So 4 year’s annuity factor is 3.170. 4 year annuity factor plus 1 equal to 4.170 then divide NPV by annuity factor 4.170. Then you’ll find your answer.
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