Libby_7e_MBA_Companion_Solutions

Page 9 of 21 end of chapter material answer 150892 or

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Unformatted text preview: of 21 END-OF-CHAPTER MATERIAL ANSWER $1,508.92 or $1,508.93 depending on how you round. Fiscal Year Ending 2010 2011 2012 2013 2014 Thereafter Total LO 1 LO 3 Future Payments $222.00 $234.00 $228.00 $214.00 $199.00 $825.00 Periods 1 2 3 4 5 6 Discount Rate 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% Present Value $209.43 $208.26 $191.43 $169.51 $148.70 $581.59 $1,922.00 $1,508.93 S P-2 Converting operating leases to capital leases Refer to Apple’s operating lease disclosure provided in S P-1. Assume that the payment amount in the “thereafter” row is equally spread out over the years 2015 – 2019 and that the appropriate discount rate is still 6 percent. What is the present value of Apple’s “’total minimum lease payments” at the end of fiscal 2009? ANSWER $1,446.71 Fiscal Year Ending 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Total LO 4 Future Payments $222.00 $234.00 $228.00 $214.00 $199.00 $165.00 $165.00 $165.00 $165.00 $165.00 Periods 1 2 3 4 5 6 7 8 9 10 Discount Rate...
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