On December 31, 2021, Metlock Corporation signed a 5-year, non-cancelable lease for a machine. The...
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On December 31, 2021, Metlock Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Metlock to make annual payments of $8,718 at the beginning of each year, starting December 31, 2021. The machine has an estimated useful life of 6 years and a $4,800 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Metlock uses the straight-line method of depreciation for all of its plant assets. Metlock's incremental borrowing rate is 4%, and the lessor's implicit rate is unknown. Click here to view factor tables. (a) X Your answer is incorrect. Compute the present value of the lease payments. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to O decimal places e.g. 5,275.) Present value of the lease payments $ 39622
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