Given the lease payments, terms remaining until the leases expire, and discount rates shown in the following table, calculate the capitalized value of each lease, assuming that lease payments are made annually at the beginning of each year.
|
Lease
|
Lease Payment
|
Remaining Term
|
Discount Rate
|
|
A
|
$40,000
|
12 years
|
10%
|
|
B
|
120,000
|
8
|
12
|
|
C
|
9,000
|
18
|
14
|
|
D
|
16,000
|
3
|
9
|
|
E
|
47,000
|
20
|
11
|