Madden manufactures equipment for sale or lease. The equipment has a fair value or selling price of $600,000. The equipment has no residual value at the end of the lease, and the leases do not contain bargain purchase options. Madden wishes to earn 12% interest on a five-year lease of this equipment. What is the amount of the annual lease payments as calculated by Madden. The first lease payment will be made at the beginning of the lease term?

Group of answer choices

$120,000

$148,612

$111,459

$90,000