=+LG 2 P17–7 Capitalized lease values A firm leases five different pieces of equipment from various suppliers. Details of these leases are provided in the following table. Calculate the capitalized value of each lease, assuming that the lease payments are made annually at the end of each year.

Lease Lease payment Remaining term Discount rate A $ 60,000 8 years 8%

B 7,000 1 12 C 39,000 6 10 D 110,000 15 14 E 12,000 2 11