Find present value of the lease payments


Schaad Corporation has entered into a 8 year lease for a piece of equipment. The annual payment under the lease will be $2,500, with payments being made at the beginning of each year. If the discount rate is 14%, the present value of the lease payments is closest to:

A) $20,000

B) $7,011

C) $17,544

D) $13,220

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Finance Basics: Find present value of the lease payments
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