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During COVID-19 the employees of BOX-X Ltd all started working from home. This ...
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During COVID-19 the employees of BOX-X Ltd all started working from home. This trend continued even after all COVID-19 restrictions were lifted. BOX-X Ltd procured a remote working agreement with their employees and decided to rent out their three-story building for the next 5 years. The tenants will immediately pay R150 000 at the beginning of the first year and then also R150 0000 at the beginning of each of the next four years. The discount rate is 10%. Calculate the present value of the annuity due? Set your calculator to four decimal places and round your final answer to the nearest rand. If s light rounding differences occur - choose the alternative that is closest to your answer.
(a) R568 618
(b) R803 250
(c) R375 000
(d) R625 480