Exercise 6-17

Your client, Keith Grouper Leasing Company, is preparing a contract to lease a machine to Souvenirs Corporation for a period of26years. Grouper has an investment cost of $428,000in the machine, which has a useful life of26years and no salvage value at the end of that time. Your client is interested in earning an11% return on its investment and has agreed to accept26equal rental payments at the end of each of the next26years.

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You are requested to provide Grouper with the amount of each of the26rental payments that will yield an11% return on investment.(Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Amount of each rental payments$