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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.
Forget it Sir
I divided it (5.335+1) instead of (4.868+1).
thanks ?
Great 🙂
