Lease A - Lease A covers office equipment which could be purchased for $125,690. Bates Company has, however, chosen to lease the equipment for $29,710 per year, payable at the end of each of the next 6 years.(Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 5%.)

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Lease B - Lease B applies to a machine which can be purchased for $134,010. Bates Company has chosen to lease the machine for $28,538 per year on a 6-year lease. Payments are due at the start of each year.(Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 5%.)

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