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Each of the independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year The
Each of the independent situations below describes a finance lease in which annual lease payments are payable at the beginning of each year The lessee is aware of the lessor's implicit interest rate. Situation Lease term Lessor's desired rate of return Lessee 's incremental borrowing rate Fair value of asset I Lessee layrs . , eaa 2 Lessor 2ayrs . , eaa For convenience, here are some table values: Periods; int. Ie periods, 10 periods, 20 periods, 20 periods, Required: rate PV, ordinary annuity S .1446 5.65a2 8.5136 7 .4694 PV, ann uity due 6.3283 9 .3649 8.3658 For each situation determine the amount of the annual lease payment, as calculated by the lessor. Round your answers to the nearest whole dollar amounts. Annual lease payment
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