1)Pitney Bowes leases office equipment to other businesses. A client wants to lease $75,000 worth of equipment for 4 years, at which point the equipment will have a residual value of $7,850. If Pitney Bowes requires a 15% compounded annually rate of return on its lease investments, what quarterly payment does it need to charge the client?

2)Franklin is the office manager for Cargill Limited. He just signed a six-year leasing contract on some new production equipment. The terms of the lease require monthly payments of $32,385. If the alternative source of financing would have an interest rate of 7.3% compounded semi-annually, what capitalized lease liability should be recorded on the Cargill Limited balance sheet today?

3)Harold is the production manager at Old Dutch Foods. He is considering leasing a new potato chipmaking machine that will improve productivity. The terms of the 10-year lease require quarterly payments of $35,125 including interest at 6.99% compounded monthly. If the equipment is valued at $1,315,557.95 today, what is the estimated residual value of the equipment when the lease expires?

4)Xeroxs outstanding sales agent, Sebastien, proudly boasts that he just completed a leasing arrangement on some new copier equipment for a three-year term at 17% compounded annually. It requires the client to make monthly payments of $2,375, and the equipment has a residual value of $2,500. What was the leasing price of the copier equipment?