Question
You may use your financial calculator or present value tables for this question. Firm A leased an asset with a list price of $300,000 on
You may use your financial calculator or present value tables for this question. Firm A leased an asset with a list price of $300,000 on January 1, 2015. The lease is for six years, and the discount rate is 10%. Without any down payment, what is the annual lease payment (X)? Select one:
a. X x 3.79079 (Present Value of Annuity of $1 @ 10% for 5 periods) = 300,000. X = $79,139.18
b. X x 4.35526 (Present Value of Annuity of $1 @ 10% for 6 periods) = 300,000. X = $68,882.23
c. X 4.35526 (Present Value of Annuity of $1 @ 10% for 6 periods) = 300,000. X = $1,306,578
d. X 3.79079 (Present Value of Annuity of $1 @ 10% for 5 periods) = 300,000. X = $1,137,237
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