Thanks @Mike9241
For example, it's possible that capitalized amount can be recalculated using the Fed's nominal interest rates as follows
Nominal Discount Rates. A forecast of nominal or market interest rates for calendar year 2021 based on the economic assumptions for the 2022 Budget is presented below. These nominal rates are to be used for discounting nominal flows, which are often encountered in lease-purchase analysis.
Nominal Interest Rates on Treasury Notes and Bonds
of Specified Maturities (in percent)
3-Year 5-Year 7-Year IO-Year 20-Year 30-Year
0.2 0.3 0.6 0.8 1.5 1.7
Why would the capitalize amount be recalculated especially if the Lessor publishes its interest rate used to calculate the lease payments?
