Calculate the lease payments for the three cases

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Reference no: EM133928396

Problem

Below are three independent lease scenarios. Payments are made at the end of each year. Use tables (PV of 1 (opens in a new tab), PVAD of 1 (opens in a new tab), and PVOA of 1 (opens in a new tab)). Note: Use the appropriate factor(s) from the tables provided. Round your intermediate calculations and final answers to the nearest whole dollar amount. Case 1 Case 2 Case 3 Cost of equipment to lessor $ 50,000 $ 64,000 $ 100,000 Fair value of equipment $ 70,000 $ 80,000 $ 100,000 Guaranteed residual value $ 10,000 Unguaranteed residual value $ 8,000 $ 20,000 Bargain purchase option $ 4,500 Life of lease 10 years 15 years 8 years Economic life of asset 12 years 16 years 10 years Rate of return required 12 % 9 % 7 %. Get the instant assignment help. Calculate the lease payments for the above three cases.

Reference no: EM133928396

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