Can someone break down the concept of the discount rate of the lease when calculating present value of cash payments. Is the discount rate the same as the rate of inflation throughout the life of the lease?

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Just use the risk free rate at date of lease inception homie. Don’t make it complicated. Nobody really cares about the rate. New lease guidance is hocus pocus anyways

helpful

No. Think of it as the cost of capital associated with the lease that the lessor is paying.

It is the implied discount rate. Just use the treasury rate at the date of inception. If the lease is 3 years, use the 3 year rate, 5 years- 5 year Treasury rate, etc... ASC 842 is basically useless because most stakeholders don't understand it.

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