Business, 02.03.2020 21:29 robert7248

Cybertrex, a manufacturing facility, rented a new piece of equipment on January 1st and agreed to pay an annual rental fee of $18,000 at the end of each of the next 10 years. The weighted average cost of capital of the company is 8%. The present value of $1 for 10 years at 8% is 0.46319 The present value of an ordinary annuity of $1 for 10 years at 8% is 6.71008 .What is the Present Value of the rental payments over 10 years?

1) $180,000

2) $55,945

3) $8,337

4) $120,781

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Cybertrex, a manufacturing facility, rented a new piece of equipment on January 1st and agreed to pa...

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