Lumeria, a lessor, makes available a server rack with a fair value of 250,000 at the inception date. The lease provides for 4 annual payments of 60,000, in advance, the first one at the commencement date. The lessee guarantees to the lessor a residual value of 20,000 at the end of the fourth year. The discount rate used for the classification analysis is 6 % (case datum). Compute the present value of the lease payments at the inception date, rounded to the nearest euro.
- Annual payment in advance
- 60,000
- Number of annual payments
- 4
- Residual value guaranteed by the lessee
- 20,000
- Discount rate used for the analysis
- 6 %
- Fair value of the server rack
- 250,000