15 Ch. 15 - Class Templates Ans.

15 Ch. 15 - Class Templates Ans. - Name: Solution Date: Ex:...

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Unformatted text preview: Name: Solution Date: Ex: 15-10 & 11 Situation 1 TVM Calcs TVM Calcs N I/Y PV PMT FV N I/Y PV PMT FV 10 11.00 600,000 10 11.00 600,000 (91,785) (101,881) TVM Calcs TVM Calcs N I/Y PV PMT FV N I/Y PV PMT FV 10 11.00 (91,785) 10 11.00 (101,881) 600,000 600,000 Situation 2 TVM Calcs TVM Calcs N I/Y PV PMT FV N I/Y PV PMT FV 20 9.00 980,000 20 9.00 980,000 (98,491) (107,356) TVM Calcs TVM Calcs N I/Y PV PMT FV N I/Y PV PMT FV 20 9.00 (98,491) 20 9.00 (107,356) 980,000 980,000 Situation 3 TVM Calcs TVM Calcs N I/Y PV PMT FV N I/Y PV PMT FV 4 12.00 185,000 4 12.00 185,000 (54,382) (60,908) TVM Calcs TVM Calcs N I/Y PV PMT FV N I/Y PV PMT FV 4 11.00 (54,382) 4 11.00 (60,908) 187,278 188,965 *Since this amount exceeds the asset's fair value, the lessee must capitalize the $185,000 fair value instead. *Since this amount exceeds the asset's fair value, the lessee must capitalize the $185,000 fair value instead. Name: Solution Date: Ex: 15-13 Situation 1 Minimum lease payments $700,000 Minimum lease payments $700,000 Gross investment in lease $700,000 Leased asset $548,592 Net investment in lease $548,592 Leased liability $548,592 TVM Calcs TVM Calcs N I/Y PV PMT FV N I/Y PV PMT FV 7 9.00 100,000 7 9.00 100,000 (548,592) (548,592) Situation 2 Minimum lease payments $750,000 Minimum lease payments $750,000 Gross investment in lease $750,000 Leased asset $547,137 Net investment in lease $547,137 Leased liability $547,137 TVM Calcs TVM Calcs N I/Y PV PMT FV N I/Y PV PMT FV 7 11.00 100,000 50,000 7 11.00 100,000 50,000 (547,137) (547,137) Situation 3 Minimum lease payments $800,000 Minimum lease payments $800,000 Gross investment in lease $750,000 Leased asset $586,842 Net investment in lease $610,167 Leased liability $586,842 TVM Calcs TVM Calcs N I/Y PV PMT FV N I/Y PV PMT FV 8 10.00 100,000 50,000 8 10.00 100,000 (610,167) (586,842) Situation 4 Minimum lease payments $840,000 Minimum lease payments $840,000 Gross investment in lease $900,000 Leased asset $572,531 Net investment in lease $596,764 Leased liability $572,531 TVM Calcs TVM Calcs N I/Y PV PMT FV N I/Y PV PMT FV 8 12.00 100,000 100,000 8 12.00 100,000 40,000 (596,764) (572,531) Name: Solution Date: Ex: 15-14 Situation 1 TVM Calcs N I/Y PV PMT FV 5 12.00 10,000 (5,674) $60,000 - $5,674 = $54,326 TVM Calcs N I/Y PV PMT FV 5 12.00 54,326 (13,456) Situation 2 TVM Calcs N I/Y PV PMT FV 5 11.00 50,000 (29,673) $420,000 - $29,673 = $390,327 TVM Calcs N I/Y PV PMT FV 5 11.00 390,327 (95,145) Situation 3 TVM Calcs N I/Y PV PMT FV 3 9.00 22,000 (16,988) $185,000 - $16,988 = $168,012 TVM Calcs N I/Y PV PMT FV 3 9.00 168,012 (60,894) Name: Solution Date: Ex: 15-15 Required 1....
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This note was uploaded on 10/23/2009 for the course MGMT 401 taught by Professor Merlot during the Spring '09 term at Indiana Institute of Technology.

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15 Ch. 15 - Class Templates Ans. - Name: Solution Date: Ex:...

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