The Last Leasing Company (LLC) is considering leasing some equipment worth $1,000,000 to a lessee. The LLC is expecting a return of 20 percent on its investment. The lessee will pay the lease management expenses separately. The rentals are to be paid in five equal annual installments at the end of each year from the date of the lease agreement.

 

Calculate the annual rental that LLC must charge to the lessee.

Answer rating: 100% (QA)

To calculate the annual rental that LLC must charge to the lessee we need to determine the presen... View the full answer