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A company leases equipment with a fair market valu...

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A company leases equipment with a fair market value (fmv) of $250,000, an economic life of six years, and no residual value. The term of the lease is six years and should return a yield of 6%. 6% Tables Present Value PV Annuity Due Year 4 .79209 3.67301 Year 5 .74726 4.46511 Year 6 .70496 5.21236 What is the amount of the lease payment per year (using the table above) assuming payments are made the beginning of each year? Choose 1 answer A. $28,131 B. $44,805 C. $47,963 D. $54,291,Thank you. How would you answer this question if you could not use excel?

 

Paper#7119 | Written in 18-Jul-2015

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