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Jenny Ltd leases a machine with a fair value ofP109,444 to Rose Ltd for five years at an annual rental(in advance) of P25,000, and Rose

Jenny Ltd leases a machine with a fair value ofP109,444 to Rose Ltd for five years at an annual rental(in advance) of P25,000, and Rose Ltd does not guarantee the estimated residual value of P15,000 on the return of the asset. What would be the interest rate implicit in the lease?

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