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Business, 02.12.2019 20:31 HNesmith16

Mays company has a machine with a cost of $750,000 which also is its fair value on the date the machine is leased to park company.
the lease is for 6 years and the machine is estimated to have an unguaranteed residual value of $75,000.
if the lessor's interest rate implicit in the lease is 12%, the six beginning-of-the-year lease payments would be :

a. $162,874.

b. $154,623.

c. $146,587.

d. $125,000.

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