The GAP Inc. discloses the following schedule to its fiscal 2018 (ended February 2, 2019) 10-K report relating to its leasing to its leasing activities.Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places.The aggregate minimum noncancelable annual lease payments under leases in effect on February 2, 2019, are as follows:Fiscal Year ($ millions)2019 $1,0982020 1,043202184720226942023512ThereafterTotal minimum lease commitments $5,6381,444Compute the present value of GAP's operating leases using the following assumptionsAssmptionDiscount rateRound remaining lease term to the nearest whole yearYearPresent Value1 $020304050>50$06%

We have to use the discounting formula to calculate the present values.

Answered: The GAP Inc. discloses the following…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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