Orvane leases a floor for two years: rent of 11,000 at the end of the first year and 12,100 at the end of the second. The annual discount rate is 10 % (case data). For teaching simplicity, assume no other payment (no variable rent, no initial direct costs). Calculate the present value of the rents, the basis for the initial measurement of the right-of-use asset.
- Rent at end of the first year
- 11,000
- Rent at end of the second year
- 12,100
- Annual discount rate
- 10 %