Question: Ar pre COMM Leasing Company has been asked by a GPG Engineering to quote on a 4-year lease for critical plant and equipment with

Ar pre COMM Leasing Company has been asked by a GPG Engineering to quote on a 4-year lease for critical plant and equipment with a cost of $380,000. The equipment can be depreciated for tax purposes over 4 years. The plant and equipment has a residual value equal to 8% of the original cost of the equipment and is to be received at the end of the lease period. COMM Leasing Company pays tax at 30% and requires a return of 14% per annum after tax from its leasing business. All lease payments are received in advance, at the start of the year -(annuity due). Required: What is the minimum annual lease payr that COMM Leasing Company should quote GPG Engineering?

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