For the Following Lease,determine the Minimum Lease Payments for the Lessor

question 11

Multiple Choice

For the following lease,determine the minimum lease payments for the lessor. $$\begin{array} { | l | l | } \hline \text { Annual lease payment at the end of the end } & \$ 32,000 \\\hline \text { Lease term } & 5 \\\hline \text { Incremental rate } & 11 \% \\\hline \text { Implicit rate (knownto lessee) } & 9 \% \\\hline \text { Executory costs } & 10,000 \\\hline\end{array}$$

• A)81,310
• B)85,572
• C)118,269
• D)124,469

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Definitions:

Satisfies Consumer Wants

The fulfillment of consumer desires and needs through the provision or consumption of goods and services.

Utility

In economics, utility refers to the satisfaction or pleasure derived from consuming goods or services.

Marginal Utility

The additional satisfaction or utility a consumer gains from consuming one more unit of a good or service.

Marginal Utility

is the additional satisfaction or benefit a consumer derives from consuming one more unit of a good or service.