eBook Problem 7-30 Firm X buys equipment for $7,000 and leases the equipment to firm A for $800 a year for four years. After four years, firm X expects to sell the asset for $6,000. What is the return that firm X earns on the lease? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest whole number. Interest Factors for the Future Value of One Dollar Time Period (eg. war 1 2 3 4 5 wwww- 1 1.010 1.020 1.030 1.041 1.051 2 1.020 1.040 1.061 1.082 1.104 3 1.030 1.061 1.093 1.126 1.159 4 1.040 1.082 1.125 1.170 1.217 5 1.050 1.102 1.158 1.216 1.276 6 1.060 1.124 1.191 1.262 1.338 7 1.070 1.145 1.225 1.311 1.403 8% 1.080 1.166 1.260 1.360 1.469 9% 1.090 1.188 1.295 1.412 1.539 10% 1.100 1.210 1.331 1.464 1.611 12% 14% 1.120 1.140 1.254 1.300 1.4051.482 1.574 1.689 1.762 1.925 15% 1.150 1.322 1.521 1.749 2.011 16% 1.160 1.346 1.561 1.811 2.100 18% 1.180 1.392 1.643 1.939 2.288 20% 1.200 1.440 1.728 2.074 2.488 6 7 8 9 10 1.062 1.072 1.083 1.094 1.105 1.126 1.149 1.172 1.195 1.219 1.194 1.265 1.230 1.316 1.267 1.369 1.305 1.423 1.344 1.480 1.340 1.407 1.477 1.551 1.629 1.419 1.501 1.504 1.606 1.594 1.718 1.689 1.838 1.791 1.967 1.587 1.714 1.851 1.999 2.159 1.677 1.828 1.993 2.172 2.367 1.772 1974 19492.211 2.144 2.476 2.3582.773 2.5943.106 2.195 2.502 2.853 3.252 3.707 2.313 2.436 2.6602.826 3.059 3.278 3.5183.803 4.0464.411 2.700 3.186 3.759 4.436 5.234 2.986 3.583 4.300 5.160 6.192 11 12 13 14 15 1.116 1.127 1.138 1.149 1.161 1.243 1.268 1.294 1.319 1.346 1.384 1.539 1710 1.898 2.105 1.426 1.601 1.796 2.012 2.252 1.469 1665 1.886 2.133 2.410 1.513 1.732 1.980 2.261 2.579 1.558 1.801 2.079 2.397 2.759 2332 2.518 2.720 2.937 3.172 2.580 2.813 3.066 3.342 3.642 2.853 3.138 3.452 3.797 4.177 3.4794.226 3.8964.818 4.363 5.492 4.887 6.261 5.474 7.138 4.652 5.350 6.153 7.076 8.137 5.117 5.936 6.886 7.988 9.266 6.176 7.287 8.599 10.147 11.973 7430 8.916 10.699 12.839 15.407 16 17 18 19 20 1.173 1.184 1.196 1.208 1.220 1.373 1.605 1.873 2.183 2.540 2.952 3.426 1.400 1.653 1.948 2.292 2.693 3.1593.700 1.428 1.702 2.026 2.407 2.854 3.380 3.996 1.457 1.754 2.107 2.527 3.026 3.617 4.316 1.486 1.806 2.191 2653 3.207 3.870 4.661 3.970 4.328 4.717 5.142 5.604 4.595 6.130 8.137 5.054 6.8669.276 5.5607.690 10.575 6.116 8.613 12.056 6.728 9.646 13.743 9.358 10.761 12.375 14.232 16.367 10.748 12.468 14.463 16.777 19.461 14.129 16.672 19.673 23.214 27.393 18.488 22.186 26.623 31.948 38.337 25 30 1.282 1641 2.094 2.666 3.386 4.292 5.427 1.348 1.811 2.427 3.243 4.322 5.743 7.612 6.848 8.623 10.063 13.268 10.835 17.000 26.462 32.919 40.874 17449 29.960 50.950 66.212 85.850 62.688 143.370 95.396 237.370 Interest Factors for the Future Value of an Annuity of One Dollar Time Period 79 RO year 12% 1.000 1.000 2.0502.060 1% 1.000 2010 3.030 4.060 5.101 2% 1.000 2020 3.060 4.122 5.204 1.000 2.020 3.091 4.184 5.309 4% 1.000 2.040 3.122 4 246 5.416 1.000 2.070 3.215 4.440 1.000 2.080 3.246 4.506 5.867 1.000 2.090 3.278 4.573 5.985 10% 1.000 2.100 3310 4.641 6.105 1.000 2.120 3.374 4.770 6.353 14% 16% 1.000 1.000 2.140 2.160 3.440 3.506 4.9215.067 6.610 6.877 20% 1.000 2.200 3.640 5.368 7.442 4.3104 5.526 275 5.637 5.751 00 6.152 6.308 6.468 7.21474347.6627898 8.286 8.583 8.892 9.214 9.359 9.755 10.159 10.583 10.462 10.950 11.464 12.006 9 8.142 9549 11.027 12.578 8.394 .897 11.491 13.181 7.153 8.654 10.260 11.978 13.816 7.336 8.923 10.637 12.488 14.487 7.523 9.200 11.028 13.021 15.193 7.716 9.487 11.436 13.579 15.937 8.115 10.089 12.300 14.776 17.549 8.536 10.730 13.233 16.085 19.337 8.978 11.413 14.240 17.518 21.321 9.930 12.915 16.499 20.798 25.958 12 13 11.567 12.683 13 809 14.947 16.097 12.169 13.412 14.680 15.974 17.293 12.808 13.486 14.19215.026 15.618 16.627 17.086 18.292 18.599 20.024 14.207 15.917 17.713 19.599 21.579 14.972 16.870 18.882 21.051 23.276 15.784 17.888 20.141 22.550 25.129 16.645 18.977 21.495 24.215 27.152 17.560 20.141 22.953 26.019 29.361 18.531 21.384 24.523 27.975 31.772 24.138 28.029 32.393 37.280 27.271 32.089 37.581 43.842 25.732 30.850 36.786 43.672 51.659 32.150 39.580 48.496 59.195 72.035 17.258 18.430 19.615 18.639 20.157 20.012 21.762 2141223.414 a 21.825 23.698 25.645 27671 29.778 23.657 25.840 28.132 30.539 33.066 25.673 28.213 30.906 33.760 36.786 27.888 30.840 33.999 37.379 40.995 30.324 33.003 33.750 36.974 37.450 41.301 41.44646.018 45.762 51.160 35.950 40.545 45.599 51.159 57.275 42.753 48.884 55.750 63.440 72.052 50.980 59.118 68.934 78 069 91.025 60.925 87.442 71.673 105.93 84.140 128.11 08 602 154 74 115.370 186.68 20 22.019 24 297 26.870 25 28.243 32.030 36.459 41.646 47.727 54.865 63.249 73.106 84.701 98.347 133.33 181.87 249.210 471.98 30 34.785 40.568 47.57556.085 66.439 79.05894.461 113.283 136.308 164.494 241.333 356.878 5303101181.8 Interest Factors for the Present Value of an Annuity of One Dollar Period vear 1 2 3 4 5 1% 2% 3% 4% 5% 6% 7 8% 0.990 0.980 0,971 0.962 0.952 0.943 0.935 0.926 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 2.941 2.884 2.829 2.775 2.723 2.673 2.624 2.577 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 9% 10% 12% 14% 16% 18% 20% 24% 28% 32 26 0.917 0.909 0.893 0.877 0.862 0.847 0.833 0.806 0.781 0.758 0.735 1.759 1.736 1.690 1.647 1.605 1.566 1.528 1.457 1.392 1.332 1.276 2.531 2.487 2.402 2.322 2.246 2.174 2.106 1.981 1.868 1.766 1674 3.240 3.170 3.037 2.914 2.798 2.690 2.589 2.404 2.241 2.096 1966 3.890 3.791 3.605 3.433 3.274 3.127 2.991 2.745 2.532 2.345 2.181 6 7 8 9 10 5.795 5.601 5.417 5.242 5.076 4.917 4.766 4.623 4.486 4.355 4.111 3.889 3.685 3.498 3.326 3.020 2.759 2.534 2.399 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5,033 4.868 4.564 4.28.8 4.039 3.812 3.605 3.242 2.937 2.678 2455 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.344 4.078 3.837 3.421 3.076 2.786 2.540 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.985 5.759 5.328 4.946 4.607 4.303 4.031 3.566 3.184 2.868 2.603 9.471 8.983 8.530 8.111 7722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 4.833 4.494 4.193 3.682 3.269 2.930 2.650 11 12 13 14 15 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.988 5.453 5.029 4.656 4.327 3.776 3.335 2.978 2.683 11.255 10.575 9.954 9.385 8.863 8.384 79437.536 7.161 6.814 6.194 5.660 5.197 4.793 4.439 3.851 3.387 3.013 2.708 12.134 11.348 10.635 9.986 9.394 8.534 8.358 7.904 7487 7.103 6.424 5.842 5.342 4.910 4.533 3.912 3.427 3.040 2.727 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7786 7.367 6.628 6.002 5.468 5.008 4.611 3.962 3.459 3.061 2.740 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.060 7.606 6.811 6.142 5.575 5.092 4.675 4.001 3.483 3.076 2.750 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.312 7.824 6.974 6.265 5.669 5.162 4.730 4.003 3.503 3.088 2.758 17 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8544 8.002 7.120 6.373 5.749 5.222 4.775 4,059 3.518 3.097 2.763 18 16.398 14992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.2017.250 6.467 5.818 5.273 4.812 4.080 3.5293.104 2.767 19 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7366 6.550 5.877 5.316 4.844 4 0973.539 3.109 2.770 2018.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.128 8.514 7469 6.623 5.929 5.353 4.870 4.110 3.5463.113 2.772 25 22.023 19.523 17413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.843 6.873 6.097 5.467 4.948 4.147 3.564 3.122 2.776 25 808 22.937 19.600 17.292 15.373 13.765 12.409 11.258 10.274 9.427 8.055 7.003 6.177 5.517 4.979 4.160 3.569 3.124 2.778 30