Appendix B

Appendix D

Interest Factors for the Present Value of One Dollar \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline TeneReriod(o.g.year) & 16 & 2% & 36 & 6 & 5 & 6x & 75 & & 9% & 10% & 125 & 14x & 15 & 16x & 18% & 20% & 26% & 280 \\ \hline 12345 & 990980971961951 & 980961942924906 & 971943915889863 & 962925889855822 & 952907.864823784 & 943890840792747 & .935873816.763713 & 926.857794735681 & 917842772708650 & 909826751683621 & 893797712636567 & 877769.675592519 & 870756.658572.497 & 862.743.641552.476 & 847718609516437 & 833694579482402 & 806650524423341 & 781610477373291 \\ \hline 678910 & 942933923914905 & 888871853837820 & 838813789766744 & 790760731703.676 & 746711677645614 & .705.665.627592558 & 666623582544509 & 630583540500463 & 596547502460422 & 564513467424386 & .507452404361322 & .456.400351.308.270 & 432376327284247 & 410354305263227 & 370314266226191 & 335279233194162 & 275222179144116 & .227.178.139108.085 \\ \hline 1112131415 & 896887879870861 & .804788773758743 & 722701681661642 & 650.625601577555 & 585557530505481 & 527497469442417 & 475444415388362 & 429392368340315 & 388356326299275 & 350319290263239 & 287257229205183 & 237208182160140 & 215187.163141123 & 195168145125108 & 162137116.099.084 & 135112.093078065 & .094.076.061.049.040 & .066.052.040.032.025 \\ \hline 1617181920 & 853844836828820 & .728.714.700.686.673 & 623605587570554 & 534513494475.456 & .458436416396377 & 394371350331312 & 339317296276258 & 292270250232215 & .252.231.212.194.178 & 218.198180164149 & .163.146.130.116.104 & .123.108.095.083.073 & .107.093.081.070.061 & .093.080.069.060.051 & .071.060.051.043.037 & .054045.038.031.026 & .032.026021017.014 & 019015012009007 \\ \hline 25 & 780 & .610 & .478 & 375 & 295 & 233 & .184 & .146 & .116 & .092 & .059 & .038 & .030 & .024 & .016 & .010 & 005 & 002 \\ \hline 30 & .742 & 552 & 412 & 308 & 231 & 174 & .131 & 099 & .075 & .051 & .033 & .020 & .015 & .012 & .007 & .004 & .002 & .001 \\ \hline \end{tabular} Firm X buys equipment for $7,000 and leases the equipment to firm A for $800 a year for five years. After five years, firm X expects to sell the asset for $6,000. What is the return that firm X earns on the lease? Use Appendix B and AppendixD to answer the question. Round your answer to the nearest whole number. %