Business, 30.11.2019 04:31 laiba012305

Cybertrex, a manufacturing facility, rented a new piece of equipment on january 1st and agreed to pay an annual rental fee of $18,000 at the end of each of the next 10 years. the weighted average cost of capital of the company is 8%. the present value of $1 for 10 years at 8% is 0.46319 the present value of an ordinary annuity of $1 for 10 years at 8% is 6.71008 what is the present value of the rental payments over 10 years?
1) $180,000
2) $55,945
3) $8,337
4) $120,781

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