how to calculate present value of lease payments

Of course, happy to assist. What's your question?

Certainly! The present value of lease payments is basically the current worth of a series of future lease payments, given a specified rate of return or discount rate. The calculation formula is: PV = Pmt * [(1 - (1 + r) ^ -n) / r], where 'PV' is the present value we're searching for, 'Pmt' is the amount of each payment, 'r' is the period interest rate, and 'n' is the total number of payments.

Definitely, let's break it down: - PV represents the Present Value that we are trying to determine. - Pmt is the periodic payment amount. - r is the periodic interest rate (divided by 100). - n is the total number of payments or periods. The calculation involves applying the interest rate (r) to each payment Pmt, then multiplying it by a factor that's determined by the interest rate and the total number of payments. This results in the present value of those future payments under the specified interest rate conditions.