Benning Manufacturing Company is negotiating with a customer for the lease of a large machine manufactured by Benning. The machine has a cash price of $640,000. Benning wants to be reimbursed for financing the machine at a 12% annual interest rate over the five-year lease term. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:

- Determine the required lease payment if the lease agreement calls for 10 equal semiannual payments beginning six months from the date of the agreement.

Table or calculator function: PVA of $1

Present Value:

n =

i =

Annual Installment:

- Determine the required lease payment if the lease agreement calls for 20 equal quarterly payments beginning immediately.

Table or calculator function: PVAD of $1

Present Value:

n =

i =

Annual Installment:

- Determine the required lease payment if the lease agreement calls for 60 equal monthly payments beginning one month from the date of the agreement. The present value of an ordinary annuity factor for n = 60 and i = 1% is 44.9550.

Table or calculator function: PVA of $1

Present Value:

n =

i =

Annual Installment: