Sheridan, Inc. manufactures machinery used in the mining industry. On January 2, 2021 it leased...
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Sheridan, Inc. manufactures machinery used in the mining industry. On January 2, 2021 it leased equipment with a cost of $410000 to Silver Point Co. The 5-year lease calls for a 20% down payment and equal annual payments at the end of each year. The equipment has an expected useful life of 5 years. If the selling price of the equipment is $710000, and the rate implicit in the lease is 7%, what are the equal annual payments? PV Annuity Due PV Ordinary Annuity PV Single Sum 4.38721 4.10020 0.71299 7%, 5 periods 4.23972 3.88965 9%, 5 periods 0.64993 O $146029 O $173162 0 0 O $138530 O $129467
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