Ace Leasing acquires equipment and leases it to customers under long-term sales-type leaves, Ace earns...
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Ace Leasing acquires equipment and leases it to customers under long-term sales-type leaves, Ace earns interest under these arrangements at a 4% annual rate. Ace leased a machine it purchased for $770.000 under an arrangement that specified annual Dayments beginning at the commencement of the lease for five years. The lessee had the option to purchase the machine at the end of the lease term for $200,000 when it was expected to have a residual value of $330,000. FV of $1. PV of $1, FVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) alculate the amount of the annual lease payments. (Round your answers to the nearest whole number.) Purchase Option Table or calculator function: Present Value Amount to be recovered (fair value) Purchase option Amount to be recovered through periodic lease payments Lease Payment Table or calculator function Lease Payments Amount of fair value recovered each lease payment
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