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Hello,
If we are supposed to calculate present value of lease payments and yet we are given quarterly rent for a warehouse, How do we discount it to? As there might be different figures in different quarters and we discount/use amortized cost on year by year basis.
Hi,
You would have to use a quarterly discount rate, so convert the annual rate to a quarterly rate, but that is off syllabus.
Thanks
@P2-D2 said:
Hi,You would have to use a quarterly discount rate, so convert the annual rate to a quarterly rate, but that is off syllabus.
Thanks
Once we get to quarterly rate, We will get the interest rate? But what year to pick for calculation of the discount factor ? Like we could do that for year 1, 2 & 3 tgen multiply tge discount numbers obtained with lease payments, what should be done in such case?
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