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NPV

MAMr. Aboukar5y ago
HI JOHN. HOPE YOU ARE WELL. i have attempted FM mock in the Opentuition website. i stuck with this question. A company has agreed to lease a machine for a period of 8 years, with equal annual payment payable at the start of each year. The NPV of the agreement at rate of 10% is 52,000 What is the annual lease payment. my answer. 8208 answer in the mock 8862. can u explain how did they arrive the answer 8862 . thanks in advance.
MAMr. Aboukar5y ago#1
Forget it Sir I divided it (5.335+1) instead of (4.868+1). thanks ?
John MoffatJohn MoffatTutor5y ago#2
Great :-)
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