QUESTION 15 Polka Leasing, Inc. leases and sells a crane with a fair value of $335,674....

Transcribed Image Text:

QUESTION 15 Polka Leasing, Inc. leases and sells a crane with a fair value of $335,674. The crane has a five-year useful life and an expected residual value of $26,853. Polka offers a four-year lease with payments in advanced and transfer to lessee of the leased item at lease end. What lease payment amount does Polka require to meet their 8% rate of retur? 3.3121 PV Ordinary Annulty Factor al 8%, 4pmts PV Annuity Due Factor at 8%, 4pmts. 3.5771 PV$1 Factor at 8%, 4yrs PV$1 Factor at 8%, Syrs 0.7350 0.6806 QUESTION 15 Polka Leasing, Inc. leases and sells a crane with a fair value of $335,674. The crane has a five-year useful life and an expected residual value of $26,853. Polka offers a four-year lease with payments in advanced and transfer to lessee of the leased item at lease end. What lease payment amount does Polka require to meet their 8% rate of retur? 3.3121 PV Ordinary Annulty Factor al 8%, 4pmts PV Annuity Due Factor at 8%, 4pmts. 3.5771 PV$1 Factor at 8%, 4yrs PV$1 Factor at 8%, Syrs 0.7350 0.6806

Answer rating: 100% (QA)

Answer Since it is a Finance lease the scrap value is not for consideration Hence ... View the full answer