The question at issue is : what is
Capitalised
the present value of a lease having
to
(1)75 years,
(2) 150
years
and
run at a rental of $1,078 per arma with interest reckoned at 4%?
The answer to O, as shown in the tables in whitakers Almanack, is
23.68 years purchase, ie 23.68 x $1078
$25,521.04.
The answer to
منذ 2
25 years
7
purchase ie 25x $1078 = $26,950.00,
sunce 25
pnice
(100 years lease 49%
= 22+1/2 years purchase)
purchase years is
the figure for
leases in perpetuity @ 4%, and it is the practice to treat leases of 100 years
a ne
as in perpelisty. In the omnilar case which arose
in Fiji, the Treasury
world not
agree to commute the proposed rental as thinly's obligations under the Land /Lease Settement expire in 1951 and it is to Ithil's advantage that USA should be responsible for payments thereafter.
Hence
a rented basis world sint Mug best, but this is a mother for the Freasing & I think we can write as ins
draft opposite.
14 O. L. Williams (Jay)
نمد
W.D. freaney 19147.
4-9-47.