Roane Company has entered into two lease agreements. In each case the cash equivalent purchase...
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Accounting
Roane Company has entered into two lease agreements. In each case
the cash equivalent purchase price of the asset acquired is known, the interest rate is 6%, and you wish to find the number of required lease payments.
Lease A covers office equipment which could be purchased for $70,000. Roane Company has, however, chosen to lease the equipment for $11,000 per year, payable at start of each of the next ___ years.
Lease A _____ years
Lease B applies to a machine which can be purchased for $66,000. Roane Company has chosen to lease the machine for $10,000 per year. Payments are due at the end of each year.
Lease B _____ years
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