What minimum lease payments should blossom charge

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Question: Blossom Corporation purchased a piece of equipment for $88,000. Blossom wanted to lease out the equipment to a customer for 5 years, at the end of which time the customer could purchase the equipment for $4,800 (at a time when its fair value would be $5,760). Annual payments on the lease would be due at the beginning of each year.

In order to earn a 12% return, what minimum lease payments should Blossom charge its customer for this equipment lease? (Round factor values to 5 decimal places, e.g. 1.25124. Round answer to 0 decimal places, e.g. 5,275.)

Minimum lease payments = $

Enter your answer in accordance to the question statement

Reference no: EM132746650

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