Lane Co Has a Machine That Cost $500,000

question 127

Multiple Choice

Lane Co. has a machine that cost $500,000. It is to be leased for 20 years with rent received at the beginning of each year. Lane wants a return of 10%. Calculate the amount of the annual rent.

• A) $53,391
• B) $59,773
• C) $74,320
• D) $58,730