Homework Answers
| Answer | ||
| The correct Option is D : $160,039 | ||
|
Fair value of machine |
$ 813,000 | |
| Less: Present value of unguaranteed residual value | $ 46,287 | 82000*0.56447 |
| Amount recovered through lease payments | $ 766,713 | |
| Divide by Present value of $1 annuity due | 4.790786769 | 1+(1-(1.10)^-5)/0.10 |
| Annual lease payments | $ 160,039 | |
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