Question 4 of 6 5.74720 5 View Policies Show Attempt History Current Attempt in Progress Wildhorse Company manufactures a check-in kiosk with an estimated economic life of 12 years and leases it to Sheffield Airlines for a period of 10 years. The normal selling price of the equipment is $249,443, and its unguaranteed residual value at the end of the lease term is estimated to be $21,500. Sheffield will pay annual payments of $37,000 at the beginning of each year. Wildhorse incurred costs of $177,700 in manufacturing the equipment and $4,400 in sales commissions in closing the lease. Wildhorse has determined that the collectibility of the lease payments is probable and that the implicit interest rate is 11%. Sheffield Airlines has an incremental borrowing rate of 11%. Click here to view factor tables. Question 4 of 6