Unformatted text preview: it leased equipment with a cost of $400,000 to Silver Point Co. The 5-year lease calls for a 10% 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 $650,000, and the rate implicit in the lease is 8%, what are the equal annual payments? PV Annuity Due PV Ordinary Annuity PV Single Sum 8%, 5 periods 4.31213 3.99271 .68508 10%, 5 periods 4.16986 3.79079 .62092 a. $146,517 b. $135,662 c. $151,644 d. $162,796 e. None of these...
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- Fall '13
- Leasing, Leasehold estate, Rental agreement, equal annual payments, PV Single