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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
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 12% interest on a five-year lease of equipment with a fair value of $909,065. The present value of an annuity due of $1 at 12% for five years is 4.037. What is the total amount of interest revenue that Jagadison will earn over the life of the lease? Multiple Choice $235,935 $245,000 $593439 $197,813
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