You are going to lease a machine from the OSheet Linen Company. Their cost in the equipment is $500,135 with a useful life of 10 years and no expected salvage value thereafter. They are looking for a 5% return and want semiannual rental payments for the next ten years starting 6 months from now. What will these payments be?

Question 17

Table= PVOAFVFVOAPVADFVADPV

n (i)= 10 (2.5%)20 (2.5%)20 (5%)2 (5%)10 (5%)

Question 18

What will these payments be?

Question 19

If the payments were made at the beginning of each period, the payments be moreless than if the payments were made at the end of the period.