Answer:
14,23,856
Explanation:
Gemini will record the right of use asset at NPV and NPV can be calculated by by multiplying the annual lease payment with th
discount factor after adding maintainance and insurace cost.
Year Lease Payment Maintainance Insurance Factor PV
1 2,25,000 15,000 12,000 0.8929 225,000
2 2,25,000 15,000 12,000 0.7972 200,893
3 2,25,000 15,000 12,000 0.7118 179,369
4 2,25,000 15,000 12,000 0.6355 160,151
5 2,25,000 15,000 12,000 0.5674 142,992
6 2,25,000 15,000 12,000 0.5066 127,671
7 2,25,000 15,000 12,000 0.4523 113,992
8 2,25,000 15,000 12,000 0.4039 101,779
9 2,25,000 15,000 12,000 0.3606 90,874
10 2,25,000 15,000 12,000 0.3220 81,137
Present Value 1,423,856
Gemini will record the right of use at 1,423,856
