B 00:35:31 On January 1. Smith Industries leased equipment to a customer for a four-year period,...
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B 00:35:31 On January 1. Smith Industries leased equipment to a customer for a four-year period, at which time possession of the leased. asset will revert back to Smith. The equipment cost Smith $280,000 and has an expected useful life of six years. Its normal sales price is $280,000. The residual value after four years is $100,000. Lease payments are due on December 31 of each year, beginning with the first payment at the end of the first year. The interest rate is 7% Calculate the amount of the annual lease payments (Round your answer to the nearest whole dollar.) The present value of $1 n=4, 77% is 0.76290. The present value of an ordinary annuity of $1 n 4,77% is 3.38721 The present value of an annuity due of St n=4,17% is 3.62432 B 00:35:31 On January 1. Smith Industries leased equipment to a customer for a four-year period, at which time possession of the leased. asset will revert back to Smith. The equipment cost Smith $280,000 and has an expected useful life of six years. Its normal sales price is $280,000. The residual value after four years is $100,000. Lease payments are due on December 31 of each year, beginning with the first payment at the end of the first year. The interest rate is 7% Calculate the amount of the annual lease payments (Round your answer to the nearest whole dollar.) The present value of $1 n=4, 77% is 0.76290. The present value of an ordinary annuity of $1 n 4,77% is 3.38721 The present value of an annuity due of St n=4,17% is 3.62432
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