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A company leases equipment with a fair market value (fmv) of $250,000, an economic life of six years, and no residual value. The term of the lease is...

A company leases equipment with a fair market value (fmv) of $250,000, an economic life of six years, and no residual value. The term of the lease is six years and should return a yield of 6%.
6% Tables Present Value PV Annuity Due
Year 4 .79209 3.67301
Year 5 .74726 4.46511
Year 6 .70496 5.21236

What is the amount of the lease payment per year (using the table above) assuming payments are made the beginning of each year?

Choose 1 answer
A. $28,131
B. $44,805
C. $47,963
D. $54,291

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A company leases equipment with a fair market value (fmv) of $250,000, an economic life of six years, and no residual value. The term of the lease is six years and should return a yield of 6%.
6%...

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