Marigold Limited has signed a lease agreement with Lantus Corp. to lease equipment with an expected lifespan of eight years, no estimated salvage value, and a cost to Lantus, the lessor of $196,000. The terms of the lease are as follows: ● The lease term begins on January 1, 2019, and runs for 5 years. ● The lease requires payments of $43,896 at the beginning of each year starting January 1, 2019. ● At the end of the lease term, the equipment is to be returned to the lessor. ● Lantus’ implied interest rate is 6%, while Marigold’s borrowing rate is 7%. Marigold uses straight-line depreciation for similar equipment. The year-end for both companies is December 31. Assume that both companies follow ASPE.Determine the present value of the minimum lease payments.Present value please show me how to do the calculation in exce

Marigold Limited has signed a lease agreement with Lantus Corp. to lease equipment with an expected lifespan of eight years, no estimated salvage value, and a cost to Lantus, the lessor of $196,000....

Marigold Limited has signed a lease agreement with Lantus Corp. to lease equipment with an expected lifespan of eight years, no estimated salvage value, and a cost to Lantus, the lessor of $196,000. The terms of the lease are as follows:

●		The lease term begins on January 1, 2019, and runs for 5 years.
●		The lease requires payments of $43,896 at the beginning of each year starting January 1, 2019.
●		At the end of the lease term, the equipment is to be returned to the lessor.
●		Lantus’ implied interest rate is 6%, while Marigold’s borrowing rate is 7%. Marigold uses straight-line depreciation for similar equipment. The year-end for both companies is December 31.

Assume that both companies follow ASPE.Determine the present value of the minimum lease payments.

Present value please show me how to do the calculation in exce

Jun 09, 2022

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Marigold Limited has signed a lease agreement with Lantus Corp. to lease equipment with an expected lifespan of eight years, no estimated salvage value, and a cost to Lantus, the lessor of $196,000....

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