As mentioned in the chapter, International Lease Finance Corporation leases airplanes to airlines. Disclosure regarding International’s leases is reproduced in Exhibit 15-11 in the text.

1. By examining the stream of expected future lease payments as of the end of 2006 and 2007, estimate how much business in new capital leases the company generated during 2007.

2. Comment on the relationship between the amount of total lease payments to be received and the estimated residual values as of the end of 2006 and 2007.

3. Estimate the average interest rate used by International Lease Finance in computing the present value of the future minimum lease payments