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You are given the following lease transaction of your competitor: $2,000 lease payment upfront, followed by two $800 lease payments, each occurring at the end
You are given the following lease transaction of your competitor: $2,000 lease payment upfront, followed by two $800 lease payments, each occurring at the end of year 2 and at the end of year 3. You want to offer a lease with three equal annual payments. Each of these annual payment is due at the end of a year. (That is, equal payment is due at the end of year 1, year 2, and year 3.) The interest rate is 10% per annum. What would be the minimum value of equal annual payment that will make a prospective customer indifferent to your lease and that of your competitor's lease
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