FM F9 – SPOT Co. (Dec 13) – Kaplan Exam Kit

This topic has 1 reply, 2 voices, and was last updated 2 years ago by IAW3005.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
March 5, 2024 at 1:00 pm #702051
abirla
Participant
- Topics: 4
- Replies: 3
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?
March 5, 2024 at 3:58 pm #702063
IAW3005
Keymaster
- Topics: 4
- Replies: 1625
The 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
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.