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Find present values of the lease payments

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Reference no: EM132780670

The current lease rates quoted by the First Leasing Ltd (FLL) on its lease contracts are: Rs 18/Rs 1.00 motstand Go R 125 Rs 1,000month for 3-year and 5-year terms respectively. While the monthly lease rentals in the year contract are payable in arrears, those for the 5-year contract are payable in advance. Assuming 10 per cent marginal cost of debt to the lessee, calculate the present values of the lease payments

Reference no: EM132780670

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