(Ignore Income Taxes in This Problem

Multiple Choice

(Ignore income taxes in this problem.) Noe Corporation has entered into a 8 year lease for a building it will use as a warehouse. The annual payment under the lease will be $2,520. 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 12%?

A) $8,142
B) $12,519
C) $20,160
D) $18,000