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Sage HIll Company is negotiating to lease a plece of equipment to Oriole, Inc. Oriole requests that the lease be for 9 years. The equipment

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Sage HIll Company is negotiating to lease a plece of equipment to Oriole, Inc. Oriole requests that the lease be for 9 years. The equipment has a useful life of 10 years. 5age Hill wants a guarantee that the residual value of the equipment at the end of the lease is at least $4,000. Oriole agrees to guarantee a residual value of this amount though it expects the residual value of the equipment to be only $2,500 at the end of the lease term. If the fair value of the equipment at lease commencement is $100,000, what would be the amount of the annual rental payments 5 age Hill demands of Oriole, assuming each payment will be made at the beginning of each year and Sage Hil wishes to earma rate of return on the lease of B\%? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answer to 0 decimal ploces, es. 5,2753 Clickhere to view factor tables. Amount of equal annual lease payments

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