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Manning Imports is contemplating an agreement to lease equipment to a customer for five years. Manning normally sells the asset for a cash price of
Manning Imports is contemplating an agreement to lease equipment to a customer for five years. Manning normally sells the asset for a cash price of exist100,000. Assuming that 8% is a reasonable rate of interest. (FV of exist1, PV of exist1, FVA of exist1, PVA of exist1, FVAD of exist1 and PVAD of exist1) What must be the amount of quarterly lease payments (beginning at the inception 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
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