Function: PV, PMT; Formula: Add; Cell Referencing Using Excel to Determine a Lease Payment with a Guaranteed Residual Value PROBLEM Cardinal Company is negotiating to lease a piece of equipment to MTBA, Inc. Cardinal wants a guarantee that the residual value of the equipment at the end of the lease. MTBA agrees to guarantee a residual value of this amount though it expects the residual value of the equipment to be less. Each payment will be made at the beginning of each year. Information concerning the lease follows. Fair value of leased equipment at commencement $70,000 Guaranteed residual value of the equipment 5,000 Expected residual value 2,500 Cardinal's desired rate of return 8% Lease term in years Useful life of leased equipment in years Student Work Area Required: Provide input into cells shaded in yellow in this template. Input the required mathematical formulas or functions with cell references to the Problem area or work area as indicated. Use the PMT function to determine the amount of the annual rental payments Cardinal demands of MTBA. Display each answer as a positive amount. Amount to be recovered through lease payments Payment amount 
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