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Carla Vista Co. Inc. has an asset with a fair market value of $461000 that it wants to lease. Carla Vista Co.'s wants to recover
Carla Vista Co. Inc. has an asset with a fair market value of $461000 that it wants to lease. Carla Vista Co.'s wants to recover its net investment in the leased asset and earn an 8% return. The asset will revert back to Carla Vista Co.'s at the end of a 5-year lease term and it is expected that the residual value of the asset will be $28000 at the end of the lease. If Carla Vista Co. wants to charge rent semi-annually starting at the beginning of the lease, what amount should the lease payments be? (Round present value factor calculations to 5 decimal places, e.g. 1.25124.) Click here to view the factor table. $101608$52409$66925$106015
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