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hi Sir, there are some question deducts deposit /initial payment and some not..Im confused should I deduct or not?
Hi,
It all depends on how the question is phrased. If you are given the present value of the payments then this incorporates all of the payments (incl. the deposit) and so the deposit payment will need to be deducted.
If you are given the present value of the future lease payments then this will no incorporate the deposit as it is not a future payment. The deposit payment will therefore not be required to be deducted.
Thanks
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