Closing inventory is RM 800.
1 answer:
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Answer:
$12,112.048
Explanation:
As for the information provided:
Lease payment amount = $3,000 each.
Period of lease = 5 years
Date of payment = 1 January each year
Rate of discount = 12%
Since first payment is made today the present value factor will be 1
Thereafter the present value cumulative discount factor for other four years @ 12% = 3.037
Now net cumulative factor for all the years included the present payment to be made today = 3.037 + 1 = 4.037
Therefore, present value of all the lease payments today = $3,000 4.037 = $12,112.048
Note: Present value discount factor shall be for 5 years as follows:
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