Lane Co. has a machine that cost $800,000. It is to be leased for 20 years with rent received at the beginning of each year. Lane wants a return of 10%. Calculate the amount of the annual rent.

		Present Value of
Period		Ordinary Annuity

19	8.36492
20	8.51356
21	8.64869

Question 2 options:

a)

$95,636

b)

$93,968

c)

$118,912

d)

$85,425