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Manning Imports is contemplating an agreement to lease equipment to a customer for five years. Manning normally sells the asset for a cash price of $100,000. Assuming that 8% is a reasonable rate of interest.

What must be the amount of quarterly lease payments (beginning at the inception of the lease) in order for Manning to recover its normal selling price as well as be compensated for financing the asset over the lease term? (Use Table 6) (Round "PV Factor" to 5 decimal places and final answer to the nearest dollar amount. Omit the "tiny_mce_markerquot; sign in your response.)

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9403738

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