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Business, 16.10.2019 03:20 ewymer3901

Lease-a-rama co. leases equipment to dunlavy co. over a lease term of 5 years, with equal annual payments starting the first day of the lease. the fair value of the equipment is $500,000 and the expected residual value at the end of the lease term is $50,000. lease-a-rama expects a 12% return on investment as a result of the lease. what is the amount of the equal lease payments dunlavy will make, and at what amount will lease-a-rama record its gross investment in the leaseadditional information: present value of an annuity due of $1 for 5 periods at 12% 4.04 present value of $1 in four periods at 12% 0.64 present value of $1 in five periods at 12% 0.57 lease payment amount gross investment in leasea. $ 116,710 $ 500,000 b. $ 115,842 $ 518,000 c. $ 116,710 $ 633,550 d. $ 115,842 $ 500,000 (a) option a(b) option b(c) option c(d) option d

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Lease-a-rama co. leases equipment to dunlavy co. over a lease term of 5 years, with equal annual pay...
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