Manning Imports is contemplating an agreement to lease equipment to a customer for two years. Manning...
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Manning Imports is contemplating an agreement to lease equipment to a customer for two years. Manning normally sells the asset for a cash price of $210,000. Assume that 12% is a reasonable rate of interest. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What must be the amount of quarterly lease payments (beginning at the commencement of the lease) in order for Manning to recover its normal selling price as well as be compensated for financing the asset over the lease term? (Round your answers to nearest whole number and round percentage answer to 1 decimal place.) PV factors based on Table or Calculator function: PV of Lease n = Lease Payment Manning Imports is contemplating an agreement to lease equipment to a customer for two years. Manning normally sells the asset for a cash price of $210,000. Assume that 12% is a reasonable rate of interest. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What must be the amount of quarterly lease payments (beginning at the commencement of the lease) in order for Manning to recover its normal selling price as well as be compensated for financing the asset over the lease term? (Round your answers to nearest whole number and round percentage answer to 1 decimal place.) PV factors based on Table or Calculator function: PV of Lease n = Lease Payment
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Cash price 210000 interest rate12 Quarter interest 1243 no of qu... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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