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Manning Imports is contemplating an agreement to lease equipment to a customer for three years. Manning normally sells the asset for a cash price
Manning Imports is contemplating an agreement to lease equipment to a customer for three years. Manning normally sells the asset for a cash price of $220,000. Assume that 12% is a reasonable rate of interest. What must be the amount of quarterly lease payments (beginning at the commencement of the lease) in order for Manning to recover its normal selling price as well as be compensated for financing the asset over the lease term? Note: Use tables, Excel, or a financial calculator. Round your answers to nearest whole number and round percentage answer to 1 decimal place. (FV of $1. PV of $1, FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) PV factors based on Table or Calculator function: PV of Lease n = j = Lease Payment
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