(Ignore Income Taxes in This Problem

Multiple Choice

(Ignore income taxes in this problem. ) Tweedie 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 $1,662.The first payment will be at the end of the current year and all subsequent payments will be made at year-ends.What is the present value of the lease payments if the discount rate is 13%?

A) $10,296
B) $11,634
C) $7,351
D) $4,945