What must be the amount of quarterly lease payments

Assignment Help Accounting Basics

Reference no: EM13123526

Manning Imports is contemplating an agreement to lease equipment to a customer for five years. Manning normally sells the asset for a cash price of $100,000. Assuming that 8% is a reasonable rate of interest.

What must be the amount of quarterly lease payments (beginning at the inception of the lease) in order for Manning to recover its normal selling price as well as be compensated for financing the asset over the lease term? (Use Table 6) (Round "PV Factor" to 5 decimal places and final answer to the nearest dollar amount. Omit the "tiny_mce_markerquot; sign in your response.)

Reference no: EM13123526

Questions Cloud

Linear equations-linear equalities : Explain in simple terms how solving linear equations is similar and different than solving linear inequalities. Cite and explain three examples.

What is the effective annual rate : A local finance company quotes a 16.8 percent interest rate on one-year loans. So, if you borrow $30,000, the interest for the year will be $5,040. Because you must repay a total of $35,040 in one year, the finance company requires you to pay $35,..

Culturally appropriate and linguistically sensitive material : Identify the following components for a lesson you might want to teach intended grade level for instruction

Test software package reduced average time for deliveries : Since purchasing the software the average delivery time over twenty delivery days was 8.6 hours. At the 0.05 level of significance, test whether the software package has reduced the average time it takes to complete deliveries.

What must be the amount of quarterly lease payments : Manning Imports is contemplating an agreement to lease equipment to a customer for five years. Manning normally sells the asset for a cash price of $100,000. Assuming that 8% is a reasonable rate of interest.

Explain how much federal income tax does he have to pay : William Nowland’s filing status is qualifying surviving spouse. His taxable income for 2011 is $76,000. Included in that amount is $5,000 of qualified dividends. Explain how much federal income tax does he have to pay for the year

Quadratic relationships in either nature or business : Give examples of Quadratic relationships in either nature or business, Remember, a quadratic relationship

Initial investment in fixed assets : What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project?

Equations and functions from word problems : You are managing a small assembly operation building toy cars. Due to increased demand, you need to hire an employee in addition to the two that are already building this line of toy assemblies. For the questions below, show all your work in deriv..

User Account

All Pages