TABLE 6.2 Present Value of 1 Teal Mountain Company is negotiating to lease a piece of equipment to Sandhill, Inc. Sandhill requests that the fease be for 9 years. The equipment has a useful life of 10 years. Teal Mountain wants a guarantee that the residual value of the equipment at the end of the lease is at least \$4,000. Sandhill 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 $60,000, what would be the amount of the annual rental payments Teal Mountain demands of Sandhill, assuming each payment will be made at the beginning of each year and Teal Mountain wishes to earn a rate of return on the lease of 12% ? (For calculation purposes, use 5 decimal places as displayed in the factor toble provided and round final answer to 0 decimal places, es 5.275. Clickhere to view factoc tables. Amount of equal annual lease payments TABLE 6.5 Present Value of an Annuity Due of 1 PVFADn,1=1+i1(1+i)n11 (n) TABLE 6.3 Future Value of an Ordinary Annuity of 1 TABLE 6.3 Future Value of an Ordinary Annuity of 1 FVFOAm=1(1+i)n1 TABLE 6.4 Present Value of an Ordinary Annuity of 1 TABLE 6.1 Future Value of 1 (Future Value of a Single Sum) FVFnj=(1+i)n TABLE 6.2 Present Value of 1 (Present Value of a Single Sum) PVFn=(1+n)n1=(1+i)n TABLE 6.4 Present Value of an Ordinarv Annuitv of 1 TABLE 6.1 Future Value of 1