Determine the minimum lease amount

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Question - Consider the example in this deck with the following criteria:

Cost of Equipment: $1MAnnual Maintenance: $20K

Residual Value at Y4: $200K

Term of the Lease Agreement: 4 years

Discount Rate: 6%

CCA Depreciation Rate: 30% of remaining amount annually

Assume that the lease amount is fixed over four years.

Using Solver, determine the minimum lease amount that the lessor should accept provide the solution on a spread-sheet and detail explanation for each step?

Reference no: EM132874390

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