How do you calculate present value of equipment

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Reference no: EM133633894

Question: During the year, the company leased new manufacturing equipment. The lease agreement indicates that the lease is for 10 years, with monthly lease payments of $3,500. The lease rate is 1%, and the estimated life of the equipment of 8.5 years. Bob reviewed the lease agreement and recorded the lease as a finance lease. How do you calculate Present value of equipment and the future value?

Reference no: EM133633894

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