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please show all work Glade Co. leases computer equipment to customers under direct-financing leases. The equipment...

please show all work

Glade Co. leases computer equipment to customers under direct-financing leases. The equipment has no residual value at the end of the lease and the leases do not contain purchase options. Glade wishes to earn 10% interest on a five-year lease of equipment with a fair value of $322,872 The present value of an annuity due of $1 at 10% for five years is 4.170. What is the total amount of interest revenue that Glade will earn over the life of the lease?

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Answer #1
Fair value of Equipment 322872
Divide by PV factor 4.170
Annual lease payments 77427
Total Annual lease payments 387137 =77427*5
Less: Fair value of Equipment 322872
Interest revenue over the life of the lease 64265 or 64263 (rounded off)
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