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 8% interest on a five-year lease of equipment with a fair value of $745,976. The present value of an annuity due of $1 at 8% for five years is 4.312. What is the total amount of interest revenue that Jagadison will earn over the life of the lease?

Multiple Choice

• $119,024

• $173,000

• $298,390

• $149,195