A lessor acquired equipment for $83,250 and plans to lease it for a period of five years. If the equipment has no estimated residual value, what must be the annual lease charge for the lessor to earn 12 percent on the investment? What would be the annual lease charge if the lessor sought to earn 8 percent? If the equipment will have a residual value of $10,000, what lease payment will earn the lessor 12 percent?
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