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Thank you so much this was helpful
@19:10
The interest payment of 887 is not a cash flow right? Only the 5000 i believe to be a cash flow.
Correct?
Yes thats right, only 5000 is the actual cashflow
Why did you add 1 to the PVFA(r,n) before multiplying with the lease payments?
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Why am I getting an AF of 1.21 when the calculation is =(1+0.05)^4.
can you explain how u got 3.546
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He told you that he made the payment already in the first year how are you re deducting 5000 from the 22730 ?