Jill Morris is presently leasing a small business computer from Eller Office Equipment Company. The lease requires 11 annual payments of $6,000 at the end of each year and provides the lessor (Eller) with an 9% return on its investment. You may use the following 9% interest factors:

10 Periods	11 Periods	12 Periods
Future Value of 1	2.36736	2.58043	2.81266
Present Value of 1	0.42241	0.38753	0.35553
Future Value of Ordinary Annuity of 1	15.19293	17.56029	20.14072
Present Value of Ordinary Annuity of 1	6.41766	6.80519	7.16073
Present Value of an Annuity Due of 1	6.99525	7.41766	7.80519

Warning

Don't show me this message again for the assignment

Ok Cancel

Assuming the computer has a 11-year life and will have no salvage value at the expiration of the lease, what was the original cost of the computer to Eller? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Cost

$

Warning

Don't show me this message again for the assignment

Ok Cancel

Link to Text

What amount would each payment be if the 11 annual payments are to be made at the beginning of each period? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Each payment

$