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Jagadison Co. leases computer equipment to customers under sales-type leases. The equipment has no residual value at the end of the lease and the leases
Jagadison Co. leases computer equipment to customers under sales-type leases. The equipment has no residual value at the end of the lease and the leases do not contain purchase options. Jagadison desires a return of 6% interest on a three-year lease of equipment with a fair value of $827,236. The present value of an annuity due of $1 at 6% for three years is 2.833. What is the total amount of interest revenue that Jagadison will earn over the life of the lease? Multiple Choice
$48,764
$292,000
$148,902
$275,745
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