Under part(a), when evaluating Leasing - calculation has used 1+4 year annuity for 7% DF
I am unable to understand this? Can you please explain, how is it 1yr +(1-4)yrs?
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2y ago#1The lease of $155000 in payable at the start of the year, which means at to, in advance
So its 155,000 * 1
155,000 * 3.387 which is 4 years at 7%
or 4.387 * 155,000
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