What is the value of this lease


What is the value of this 20 year lease? The first payment, due one year from today is $2,000 and each annual payment will increase by 4%. The discount rate used to evaluate similar leases is 9%.

a.$ 24,361 

b.$ 68,000 

c.$ 39,856

d.$ 40,000

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Finance Basics: What is the value of this lease
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