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Current Attempt Elizabeth Morris is presently leasing a small business computer from Eller Office Equipment Company. The lease requires 10 annual payments of $20,000 at
Current Attempt Elizabeth Morris is presently leasing a small business computer from Eller Office Equipment Company. The lease requires 10 annual payments of $20,000 at the end of each year and provides the lessor (Eller) with an 119 return on its investment. You may use the following 11% interest factors Future Value of 1 Present Value of 1 Future Value of Ordinary Annuity of 1 Present Value of Ordinary Annuity of 1 Present Value of an Annuity Due of 1 9 Periods 2.55804 0.39092 14.16397 5.53705 6.14612 10 Periods 2.83942 0.35218 16.72201 5.88923 6.53705 11 Periods 3.10176 0,31728 19.56143 6.20652 6.88923 (a) Assuming the computer has a ten-year life and will have no salvage value at the expiration of the lease, what was the original cost of the computer to Eller? (Round factor values to 5 decimal places, 03. 1.25124 and final answer to decimal places, es 458,581.) Original Cost $
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