Each of the four independent situations below describes a sales-type lease in which annual lease payments of $130,000 are payable at the beginning of each year. Each is a finance lease for the lessee. Note: Use tables, Excel, or a financial calculator. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Lease term (years) Lessor's and lessee's interest rate Residual value: Estimated fair value Guaranteed by lessee 1 7 8% $0 $0 2 Situation 7 10% $ 56,000 50 8 9% $ 8,600 $ 8,600 Determine the following amounts at the beginning of the lease. Note: Round your intermediate and final answers to the nearest whole dollar amount. 8 11% $ 56,000 $ 66,000
Each of the four independent situations below describes a sales-type lease in which annual lease payments of $130,000 are payable at the beginning of each year. Each is a finance lease for the lessee. Note: Use tables, Excel, or a financial calculator. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Lease term (years) Lessor's and lessee's interest rate Residual value: Estimated fair value Guaranteed by lessee 1 7 8% $0 $0 2 Situation 7 10% $ 56,000 50 8 9% $ 8,600 $ 8,600 Determine the following amounts at the beginning of the lease. Note: Round your intermediate and final answers to the nearest whole dollar amount. 8 11% $ 56,000 $ 66,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Each of the four independent situations below describes a sales-type lease in which annual lease payments of $130,000 are payable
at the beginning of each year. Each is a finance lease for the lessee.
Note: Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. FVA of $1. PVA of $1. EVAD of $1 and PVAD of $1)
Lease term (years)
Lessor's and lessee's interest rate.
Residual value:
Estimated fair value.
Guaranteed by lessee
A. The lessor's
1. Total lease payments
2. Gross investment in the lease
3. Net investment in the lease
1
1
2
7'
8%
Situation
2
3
Situation
$8
Determine the following amounts at the beginning of the lease.
Note: Round your intermediate and final answers to the nearest whole dollar amount.
7
10%
$ 56,000
50
8
9%
$ 8,600
$ 8,600
8
11%
$ 56,000
$ 66,000
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