What is the present value of total dollars received over a 30 lease with the following criteria?
1) monthly payments of $23,000
2) at the end of each 5 yr period lease payments increase by 10%
3) Inflation is assumed to be...
a) 5% each of 1st five years
b) 10% each yr. for 2nd five year
c) 5% for each yr. remaining (20 yrs)
In year 30, what is the present value of a dollar received in yr 30 based on the above stated inflation rates?
1) monthly payments of $23,000
2) at the end of each 5 yr period lease payments increase by 10%
3) Inflation is assumed to be...
a) 5% each of 1st five years
b) 10% each yr. for 2nd five year
c) 5% for each yr. remaining (20 yrs)
In year 30, what is the present value of a dollar received in yr 30 based on the above stated inflation rates?