1.

(a) Bussel Ltd. rents out kitchen equipment to restaurants. Using your financial calculator, calculate how much Bussel would need to charge as an annual payment to recover the cost and make a 10% return on an oven that cost $12,000 which will be leased for 5 years with payments due at the beginning of the year? Round your answer to the nearest dollar.

b) As in a) Bussel Ltd. rents out kitchen equipment to restaurants. Using your financial calculator, calculate how much Bussel would need to charge as an annual payment to recover the cost and make a 10% return on an oven that cost $12,000 which will be leased for 5 years with payments due at the beginning of the year but this time, Bussel knows that at the end of the five years, the oven would be returned and would still be worth $4,000. Round your answer to the nearest dollar