Answer Showing the Financial Calculator Inputs of PV,FV, PMT, N, I/Y : a) We sold equipment by accepting a three-year non-interest-bearing note for $120,000. Our customer would normally pay 6% interest on similar debt. The note requires the customer to repay $40,000 at the end of every year for 3 years. What is the value of the sale? b) On January 1, 2020, we want to lease a piece of machinery that has a fair value of $150,000. The market rate for financing is 8%, and the lease term is five years. At the end of the lease, the machinery will be returned to the leasing company. The residual value is not guaranteed. Lease payments are due at the beginning of each quarter, with the first payment due January 1, 2020.