I.

II.

Benning Manufacturing Company is negotiating with a customer for the lease of a large machine manufactured by Benning. The machine has a cash price of $910,000. Benning wants to be reimbursed for financing the machine at an 10% annual interest rate. (FV of $1, PV of $1, FVA of $1, PVA of $11 FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the required lease payment if the lease agreement calls for 15 equal annual payments beginning immediately Table or calculator function Present Value Annual Installment 2. Determine the required lease payment if the first of 15 annual payments will be made one year from the date of the agreement. Table or calculator function Present Value Annual Installment