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Wildhorse, Inc. manufactures machinery used in the mining industry. On January 2, 2021 it leased equipment with a cost of $450000 to Silver Point Co.
Wildhorse, Inc. manufactures machinery used in the mining industry. On January 2, 2021 it leased equipment with a cost of $450000 to Silver Point Co. The 5-year lease calls for a 20% down payment and equal annual payments at the end of each year. The equipment has an expected useful life of 5 years. If the selling price of the equipment is $750000, and the rate implicit in the lease is 9%, what are the equal annual payments? PV Annuity Due PV Ordinary Annuity. PV Single Sum 9%,5 periods 4.23972 3.88965 0.64993 11%,5 periods 4.10245 3.69590 0.59345 O $141519 O $154256 O $192819 O $162342
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