CALCULATOR FULL SCREENPRINTER VERSIONt BACK NEXT Exercise 21A 3 a-g Delaney Company leases an automobile with a fair value of $10,000 from John Simon Motors, Inc., on the following terms: 1. Non-cancelable term of 50 months. 2. Rental of S200 per month (at the beginning of each month). (The present value at 0.5% per month is $8,873.) 3. Delaney guarantees a residual value of $1,180 the present value at 0.5% per month S $920 Delaney expects the probable residual value to be $1,180 12 at the end of the lease term Estimated economic life of the automobile is 60 months. Delaney's incremental borrowing rate is 6% a year (0.5% a month). Simon's implicit rate is unknown. 4. 5. he factor table provided.) (For calculation purposes, use 5 decimal places as displayed in t Your answer is correct. What is the nature of this lease to Delaney? finance The nature of this lease is a/anlease 1204 PM 112 search CALCULATOR FULL SCREENPRINTER VERSIONt BACK NEXT Exercise 21A 3 a-g Delaney Company leases an automobile with a fair value of $10,000 from John Simon Motors, Inc., on the following terms: 1. Non-cancelable term of 50 months. 2. Rental of S200 per month (at the beginning of each month). (The present value at 0.5% per month is $8,873.) 3. Delaney guarantees a residual value of $1,180 the present value at 0.5% per month S $920 Delaney expects the probable residual value to be $1,180 12 at the end of the lease term Estimated economic life of the automobile is 60 months. Delaney's incremental borrowing rate is 6% a year (0.5% a month). Simon's implicit rate is unknown. 4. 5. he factor table provided.) (For calculation purposes, use 5 decimal places as displayed in t Your answer is correct. What is the nature of this lease to Delaney? finance The nature of this lease is a/anlease 1204 PM 112 search