Present value of an ordinary annuity and annuity due. Jill Morris is presently leasing a small business computer from Eller Office Equipment Company. The lease requires 10 annual payments of $6,000 at the end of each year and provides the lessor (Eller) with an 8% return on its investment. You may use the following 8% interest factors:

	9 Periods	10 Periods	11 Periods
Future Value of 1	1.99900	2.15892	2.33164
Present Value of 1	.50025	.46319	.42888
Future Value of Ordinary Annuity of 1	12.48756	14.48656	16.64549
Present Value of Ordinary Annuity of 1	6.24689	6.71008	7.13896
Present Value of an Annuity Due of 1	6.74664	7.24689	7.71008

Instructions (a) Assuming the computer has a ten-year life and will have no salvage value at the expiration of the lease, what was the original cost of the computer to Eller? SHOW YOUR WORK. (b) What amount would each payment be if the ten annual payments are to be made at the beginning of each period? SHOW YOUR WORK.