A tenant wants to lease a building for $48,000 per year. She signs a five-year rental agreement that states that she will pay $24,000 every six months for the next five years. Which of the following is the timeline for her rental payments, assuming she makes the first payment immediately?
◦
Date
(years) | 0 | 1 | 2 | 3 | 4 | 5 |
Cash Flows
(thousands) | $48 | $48 | $48 | $48 | $48 | $48 |
◦
Date
(years) | 0 | 1/2 | 1 | 1 1/2 | 2 | 2 1/2 | 3 | 3 1/2 | 4 | 4 1/2 | 5 |
Cash Flows
(thousands) | -$24 | -$24 | -$24 | -$24 | -$24 | -$24 | -$24 | -$24 | -$24 | -$24 | 0 |
◦
Date
(years) | 0 | 1 | 2 | 3 | 4 | 5 |
Cash Flows
(thousands) | -$48 | -$48 | -$48 | -$48 | -$48 | -$48 |
◦
Date
(years) | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 3 1/2 | 4 | 4 1/2 | 5 |
Cash Flows
(thousands) | $24 | $24 | $24 | $24 | $24 | $24 | $24 | $24 | $24 | $24 | $24 |
20,000 year old spotted hyena painting from the Chauvet Cave, France
funny signs
building blocks
Dehydration Signs
Building competency in safety