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Question - Your client, Keith Moreland Leasing Company, is preparing a contract to lease a machine to Souvenirs Corporation for a period of 27 years. Moreland has an investment cost of $582,960 in the machine, which has a useful life of 27 years and no salvage value at the end of that time. Your client is interested in earning an 11% return on its investment and has agreed to accept 27 equal rental payments at the end of each of the next 27 years.
You are requested to provide Moreland with the amount of each of the 27 rental payments that will yield an 11% return on investment.
Calculate Amount of each rental payments?
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