Manning Imports is contemplating an agreement to lease equipment to a customer for five years, the assets
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Manning Imports is contemplating an agreement to lease equipment to a customer for five years, the asset’s estimated useful life. Manning normally sells the asset for a cash price of $100,000. Assuming that 8% is a reasonable rate of interest, what must be the amount of quarterly lease payments (beginning at the commencement of the lease) in order for Manning to recover its normal selling price as well as be compensated for financing the asset over the lease term?
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Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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