The project that this piece of equipment is to be used on is expected to last 4 years. Currently, no follow on projects have been identified. Determine the hourly lease payments for the piece of equipment with the following conditions. Term of Lease = 4 years Estimated Yearly Hours Usage = 1,500 Monthly Payment = $ 4,300 Deposit = 2 months payments Interest Rate for money = 5.0%
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- Imagine you leased a piece of equipment for three years. The lease required payments of $10,000 per year, due at the end of each year. Calculate the present value of each payment if the interest rate is 10%. Complete the following table: Present Value of Payment Payment $10,000 $10,000 $10,000 Year Year 1 (end of this year) Year 2 (end of next year) Year 3 (end of the following year) What is the total present value of all three payments?A construction company agreed to lease payments of S427.14 on construction equipment to be made at the end of every month for 8.75 years. Financing is at 9% compounded monthly. (a) What is the value of the original lease contract? (b) If, due to delays, the first 9 payments were deferred, how much money would be needed after 10 payments to bring the lease payments up to date? (c) How much money would be required to pay off the lease after 10 payments? (d) If the lease were paid off after 10 payments, what would the total interest be? (e) How much of the total interest would be due to deferring the first 9 payments? (a) The value of the original lease contract is S (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The company would have to pay $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) The company would need $. (Round the final answer…Compute the monthly payments on a 3-year lease for a $28,427 car if the annual rate of depreciation is 17% and the lease's annual interest rate is 5.7%
- One of the departments at Yolo Industries has entered into a 9 year lease for a piece of equipment. The annual payment under the lease will be $3,600, with payments being made at the beginning of each year. If the discount rate is 10%, the present value of the lease payments is closest to (Ignore income taxes.): Click here to view Exhibit 14B-1 and Exhibit 148-2, to determine the appropriate discount factor(s) using the tables provided. (Round your intermediate calculations to 3 decimal places.) Multiple Choice $22,806 $10,07Y $22,105 $32,400A vehicle can be purchased by paying $18,000 now, or it can be leased by paying $515 per month for the next three years, with the first payment due on the day of signing the lease. What nominal annual rate of interest compounded monthly is charged on the lease?The price of a new car is $24,995. The dealership offers a lease proce of $350 per month for 5 years with a $2000 down payment. Determine the average cost per month iver the lifetime of the lease.
- A construction company agreed to lease payments of $514.43 on construction equipment to be made at the end of every month for 8.75 years. Financing is at 11% compounded monthly. (a) What is the value of the original lease contract? (b) If, due to delays, the first 9 payments were deferred, how much money would be needed after 10 payments to bring the lease payments up to date? (c) How much money would be required to pay off the lease after 10 payments? (d) If the lease were paid off after 10 payments, what would the total interest be? (e) How much of the total interest would be due to deferring the first 9 payments?A property development agreement valued at $47,000 requires annual lease payments of $7,500. The first payment is due three years after the date of the agreement and interest is 9% compounded monthly. For how long will payments be made? The payments will be made forO vear(s) and O month(s). (Type whole numbers.)Domebo Corporation has entered into a 8 year lease for a piece of equipment. The annual payment under the lease will be $3,200, with payments being made at the beginning of each year. If the discount rate is 14%, the present value of the lease payments is closest to (Ignore income taxes.): Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. (Round your intermediate calculations to 3 decimal places.)
- An industrial engineering consulting firm signed a lease agreement for simulation software. Calculate the present worth in year 0 if the lease requires a payment of $30,000 now and amounts increasing by 5% per year through year 7. Use an interest rate of 10% per year.Find the interest paid on a 3-year lease for a $26,765 car if the car depreciates at an annual rate of 10% and the lease has an annual interest rate of 4.8%.Financial Statement Reporting for a Finance Lease Reynolds Construction (RC) needs a piece of equipment that costs $165,000. The equipment has an economic life of 3 years and no residual value. The equipment will not require maintenance because its useful life is so short. RC can borrow the full cost of the equipment at an interest rate of 10% with payments due at the end of the year. Alternatively, RC can lease the equipment for $60,000 with payments due at the end of the year. Assume RC chooses the lease, which is a finance lease for financial reporting purposes. Answer the following questions. (Hint: See Table 19-1.) a. What is the initial lease liability that must be reported on the balance sheet? Do not round intermediate calculations. Round your answer to the nearest cent. Enter your answer as a positive value. $ b. What is the initial right-of-use asset? Do not round intermediate calculations. Round your answer to the nearest cent. $ c. What will RC report as an interest expense…