On january 1, espinoza moving and storage leased a truck for a four-year period, at which time possession of the truck will revert back to the lessor. annual lease payments are $10,000 due on december 31 of each year, calculated by the lessor using a 5% discount rate. if espinoza's revenues exceed a specified amount during the lease term, espinoza will pay an additional $4,000 lease payment at the end of the lease. espinoza estimates a 60% probability of meeting the target revenue amount. what amount should be added to the right-of-use asset and lease liability under the contingent rent agreement?

You are working on a bid to build two city parks a year for the next three years. this project requires the purchase of $249,000 of equipment that will be depreciated using straight-line depreciation to a zero book value over the three-year project life. ignore bonus depreciation. the equipment can be sold at the end of the project for $115,000. you will also need $18.000 in net working capital for the duration of the project. the fixed costs will be $37000 a year and the variable costs will be $148,000 per park. your required rate of return is 14 percent and your tax rate is 21 percent. what is the minimal amount you should bid per park? (round your answer to the nearest $100) (a) $214,300 (b) $214,100 (c) $212,500 (d) $208,200 (e) $208,400