Giedruola the part 2 of example 2 inlcudes the reconciliation of MLPS and fian. lease obl. I didn't understand the net method plz help me...
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Leases reconciliation
11y ago#1Calculate the PRESENT VALUE of the next instalemt, then the following 4 installments, and finally the last installment by using the discount factor to help you arrive at these present values
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By discounting for one year 1500 is 2727.27 and u have cal. 2,790
and if my simple method is also correct then for how many years the "more than 5 years fig" should me discounted for?
11y ago#3I don't see where your 2,790 comes from.
Frankly, it doesn't really matter so long as you appreciate the technique of discounting but, if the cost of capital is 10% (I don't have the notes readily available) then 2,727 is the discounted value of 3,000 payable in one year's time
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