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

question 56

Multiple Choice

For the following lease,determine the minimum lease payments for the lessor. $$\begin{array} { | l | l | } \hline \text { Annual lease payment at the end of the end } & \$ 22,000 \\\hline \text { Lease term } & 5 \\\hline \text { Incremental rate } & 10 \% \\\hline \text { Implicit rate (unknown to lessee) } & 8 \% \\\hline \text { Executory costs } & 5,000 \\\hline\end{array}$$

• A)67,548
• B)71,279
• C)86,502
• D)91,243

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Definitions:

JAN Standard

A specification often referring to Joint Army-Navy standards, which are military standards for electronic components and other materials.

Military

A branch of a nation's armed forces trained for combat on land.

Polarized Capacitors

Capacitors that are specifically designed to be used with a particular polarity in DC circuits and can be damaged if connected in reverse.

Electrolytic

A type of capacitor that is polarity sensitive.