Calculate the annual lease payment

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Koss Leasing requires a 14 percent return on its investments. It is prepared to lease you a truck for two years, provided that it can achieve this return. The lease payments are to be made at the beginning of the year. The truck, which has a useful economic life of six years, cost Koss $60,000. Its estimated value in two years is $17,000. The CCA rate is 30 percent, and Koss's tax rate is 25 percent.

Calculate the annual lease payment required by Koss Leasing.

Reference no: EM133001065

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