Exercise 13-8 Determining lease payment amount (LO 13-1) Below are three independent lease scenarios. Payments are made at the end of each year. Use tables (PV of 1, PVAD of 1, and PVOA of 1) (Use the appropriate factor(s) from the tables provided. Round your intermediate calculations and final answers to the nearest whole dollar amount.) Cost of equipment to lessor Fair value of equipment Guaranteed residual value Unguaranteed residual value Bargain purchase option Life of lease Economic life of asset Rate of return required $10,000 Case 1 $50,000 $70,000 Case 2 $64,000 $80,000 Case 3 $100,000 $100,000 $ 8,000 10 years 12 years 12% 15 years $ 20,000 $ 4,500 16 years 9% 8 years 10 years 7% Required: Calculate the lease payments for the above three cases. Lease payment Case 1 Case 2 Case 3
Exercise 13-8 Determining lease payment amount (LO 13-1) Below are three independent lease scenarios. Payments are made at the end of each year. Use tables (PV of 1, PVAD of 1, and PVOA of 1) (Use the appropriate factor(s) from the tables provided. Round your intermediate calculations and final answers to the nearest whole dollar amount.) Cost of equipment to lessor Fair value of equipment Guaranteed residual value Unguaranteed residual value Bargain purchase option Life of lease Economic life of asset Rate of return required $10,000 Case 1 $50,000 $70,000 Case 2 $64,000 $80,000 Case 3 $100,000 $100,000 $ 8,000 10 years 12 years 12% 15 years $ 20,000 $ 4,500 16 years 9% 8 years 10 years 7% Required: Calculate the lease payments for the above three cases. Lease payment Case 1 Case 2 Case 3
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 13-8 Determining lease payment amount (LO 13-1)
Below are three independent lease scenarios. Payments are made at the end of each year. Use tables (PV of 1, PVAD of 1, and PVOA
of 1) (Use the appropriate factor(s) from the tables provided. Round your intermediate calculations and final answers to the nearest
whole dollar amount.)
Cost of equipment to lessor
Fair value of equipment
Guaranteed residual value
Unguaranteed residual value
Bargain purchase option
Life of lease
Economic life of asset
Rate of return required
$10,000
Case 1
$50,000
$70,000
Case 2
$64,000
$80,000
Case 3
$100,000
$100,000
$ 8,000
10 years
12 years
12%
15 years
$ 20,000
$ 4,500
16 years
9%
8 years
10 years
7%
Required:
Calculate the lease payments for the above three cases.
Lease payment
Case 1
Case 2
Case 3
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