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Sycamore Company: Lease Payment

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Scyamore Company is negotiating with a customer for the lease of a large machine, manufactured by Scyamore. The machine has a cash price of $800,000. Syamore wants to be reimbursed for financing the machine at a 12% annual return. Calculate the required lease payment if the lease calls for 10 annual payments with the first payment due today.

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Solution Summary

Solution describes the steps to calculate the annual lease amount in the given case.

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Present Worth of machine=PV=$800,000
Discount rate=i=12%
Number of ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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