(Appendix 8A)(Ignore Income Taxes in This Problem

Multiple Choice

(Appendix 8A) (Ignore income taxes in this problem. ) Latting Corporation has entered into a 7 year lease for a building it will use as a warehouse.The annual payment under the lease will be $4, 781.The first payment will be at the end of the current year and all subsequent payments will be made at year-ends.If the discount rate is 6%, the present value of the lease payments is closest to:

A) $31, 573
B) $22, 257
C) $33, 467
D) $26, 688