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;5. (TCO E) Jack Sawyer is presently leasing a copier from John Office Equipment Company. The lease requires 11 annual payments of \$4,500 at the end of each year and provides the leaser (John) with an 8% return on its investment. You may use the following 8% interest factors.;9 Periods;10 Periods;11 Periods;Future Value of 1;1.99900;2.15892;2.33164;Present Value of;.50025;.46319;.42888;Future Value of;12.48756;14.48656;16.64549;Ordinary Annuity of 1;Present Value of;6.24689;6.71008;7.13896;Ordinary Annuity of 1;Present Value of;6.74664;7.24689;7.71008;Annuity Due of 1;Instructions;(a) Assuming the computer has an 11-year life and will have no salvage value at the expiration of the lease, what was the original cost of the copier to John?;(b) What amount would each payment be if the 11 annual payments are to be made at the beginning of each period? (Points: 25)

Paper#74150 | Written in 18-Jul-2015

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