Haystack, Inc., manufactures machinery used in the mining industry. On January 2, 2016, it leased equipment with a cost of $400,000 to Silver Point Co. The five-year lease calls for a 10% down payment and equal annual payments at the end of each year. The equipment has an expected useful life of five years. If the selling price of the equipment is $650,000, and the rate implicit in the lease is 8%, what are the equal annual payments? PV Single Sum PV Ordinary Annuity PV Annuity Due 8%, 5 periods 4.31213 3.99271 68508 3.79079 10%, 5 periods 4.16986 .62092 $146,517 $135,662 $151,644 $162,796