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On March 31, 2022, the Gusto Beer Company leased a machine from B. A. Lush, Inc. The lease agreement requires Gusto to pay 6 annual

On March 31, 2022, the Gusto Beer Company leased a machine from B. A. Lush, Inc. The lease agreement requires Gusto to pay 6 annual payments of $16,000 on each May 31, with the first payment due on May 31, 2023. Assuming an interest rate of 10% and that this lease is treated as an installment sale (capital lease), Gusto will initially value the machine by multiplying $16,000 by which of the following? A. Future value of an ordinary annuity of $1 at 10% for 6 periods. B. Future value of $1 at 10% for 6 periods. C. Present value of $1 at 10% for 6 periods. D. Present value of an ordinary annuity of $1 at 10% for 6 periods. A B O C O

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