Marshall Inc. is negotiating an agreement to lease equipment to a lessee for 5 years....
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Marshall Inc. is negotiating an agreement to lease equipment to a lessee for years. The equipment has a useful life of years. The fair value of the equipment is $ and the lessor expects a rate of return of on the lease contract. Marshall Inc. expects the equipment to have a fair value of $ at the end of years; however, the lessee does not guarantee the residual amount. If the first annual payment is required at the commencement of the lease, what fixed lease payment should Marshall Inc. charge in order to earn its expected rate of return on the contract?
Note: Enter the answer in dollars and cents, rounded to the nearest penny.
Note: Do not use a negative sign with your answer.
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