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Assume Lessor Corporation wants to recover fair value, plus interest at 9%, for its investment of $190,000 in an asset that is to be leased
Assume Lessor Corporation wants to recover fair value, plus interest at 9%, for its investment of $190,000 in an asset that is to be leased to Lessee Corporation for five years with the annual rental due in advance each year. Click here to view the factor table Calculate, using PV tables, the amount of the annual rental payment, assuming there is no purchase option that is reasonably certain to be exercised by the lessee (under IFRS),and no bargain purchase option (under ASPE) or residual value at the end of the lease. (Round factor values to 5 decimal places, e.g. 1.25124. Round answer to 2 decimal places, e.g. 52.75.) Annual Rental Payment $
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