calculate the IRR (Internal Rate of Return) that GAAP requires
1. calculate the IRR (Internal Rate of Return) that GAAP requires for the leveraged lease with the cash flow given in the leveraged lease problem.2. provide an amortization table for the leveraged lease asset according to GAAPyr ########
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30,000.00
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25,000.00
########
25,000.00
########
20,000.00
########
20,000.00
########
20,000.00
########
20,000.00
########
-25,000.00
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-25,000.00
########
25,000.00
10.66%
full irr
irr on pos investment
NORMAL ACCOUNTING DISALLOWED BY FASB
yr
net investment
interest income
reduction of invest
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1,00,000.00
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30,000.00
80,664.81
10,664.81
19,335.19
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25,000.00
64,267.57
8,602.75
16,397.25
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25,000.00
46,121.58
6,854.02
18,145.98
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20,000.00
31,040.37
4,918.78
15,081.22
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20,000.00
14,350.76
3,310.40
16,689.60
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20,000.00
-4,118.75
1,530.48
18,469.52
########
20,000.00
-24,558.01
-439.26
20,439.26
########
-25,000.00
-2,177.08
-2,619.07
-22,380.93
########
-25,000.00
22,590.74
-232.18
-24,767.82
########
25,000.00
0.00
2,409.26
22,590.74