On January James Industries leased equipment to a customer for a fouryear period, at which time possession of the leased
asset will revert back to James. The equipment cost James $ and has an expected useful life of six years. Its normal sales
price is $ The residual value after four years is $ Lease payments are due on December of each year,
beginning with the first payment at the end of the first year. The interest rate is
Calculate the amount of the annual lease payments.
Note: Use tables, Excel, or a financial calculator. Enter amounts as positive values rounded to the nearest whole dollar. FV of
$ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $
