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

question 28

Multiple Choice

For the following lease,determine the minimum lease payments for the lessee. $\begin{array}{|l|l|}\hline\text { Annual lease payment at the end of the end } & \$ 23,104 \\\hline \text { Lease term } & 5 \\\hline \text { Incremental rate } & 10 \% \\\hline \text { Implicit rate (unknown to lessee) } & 3 \% \\\hline \text { Unguaranteed residual value } & 10,000 \\\hline \text { Guaranteed residual value } & 20,000\\\hline\end{array}$

• A)99,053
• B)100,001
• C)105,859
• D)106,210

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Definitions:

Cause Stress

Factors or situations that induce a physical or emotional strain or tension in individuals.

Locus of Control

An individual's belief about the extent to which their actions can influence the events and outcomes in their lives.

Broad Preferences

General or overarching choices or inclinations that an individual or group may have.

Geert Hofstede

A Dutch social psychologist who is known for his research on cross-cultural groups and organizations, particularly for developing cultural dimensions theory.