Manning Imports is contemplating an agreement to lease equipment to a customer for three years. Manning normally sells the asset for a cash price of $270,000. Assume that 8% is a reasonable rate of interest. What must be the amount of quarterly lease payments (beginning at the commencement of the lease) in order for Manning to recover its normal selling price as well as be compensated for financing the asset over the lease term? Note: Use tables, Excel, or a financial calculator. Round your answers to nearest whole number and round percentage answer to 1 decimal place. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) PV factors based on Table or Calculator function PV of Lease Lease Payment IM
Manning Imports is contemplating an agreement to lease equipment to a customer for three years. Manning normally sells the asset for a cash price of $270,000. Assume that 8% is a reasonable rate of interest. What must be the amount of quarterly lease payments (beginning at the commencement of the lease) in order for Manning to recover its normal selling price as well as be compensated for financing the asset over the lease term? Note: Use tables, Excel, or a financial calculator. Round your answers to nearest whole number and round percentage answer to 1 decimal place. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) PV factors based on Table or Calculator function PV of Lease Lease Payment IM
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
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Transcribed Image Text:Manning Imports is contemplating an agreement to lease equipment to a customer for three years. Manning normally sells the asset
for a cash price of $270,000. Assume that 8% is a reasonable rate of interest.
What must be the amount of quarterly lease payments (beginning at the commencement of the lease) in order for Manning to recover
its normal selling price as well as be compensated for financing the asset over the lease term?
Note: Use tables, Excel, or a financial calculator. Round your answers to nearest whole number and round percentage answer to 1
decimal place. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1)
PV factors based on
Table or Calculator function
PV of Lease
Lease Payment
n=
1H
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