Estimate the value of leased assets

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Reference no: EM131276214

Casher Industries leases a significant portion of its assets, expecting $25 million in rental expense next year. Casher Industries can borrow at 7 percent, and the average life of leased assets is seven years.

Estimate the value of leased assets. If you misestimate the average life to be 10 years, how large will the valuation error be?

Reference no: EM131276214

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