Problem:
Is there an easy or short cut to answering the question below? I need to verify my answer. I used the formula 1/(1.021). Thanks
Cash Flow Scenario: Lease. Annual payments of $50,000 paid at the beginning of each of the next five years (total of $250,000). What is the NPV of all lease payments?
year 1 NPV $50,000
year 2 NPV $48,972
year 3 NPV $47,964
year 4 NPV $46,978
year 5 NPV $46,012
Total: $239,925