If a Machine Costs $50,000, and $5,000 a Year for the Lessor

question 45

Multiple Choice

If a machine costs $50,000, and $5,000 a year for the lessor to maintain and insure, what equivalent annual cost would serve as the basis of a full-service lease payment for a six-year operating lease, paid in arrears, if the lessor's cost of capital is 8%?

• A)$15,816
• B)$73,114
• C)$17,155
• D)$55,000

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Definitions:

Readability and Comprehension

The ease with which a reader can understand written text and the extent to which they can grasp its meaning.

Words Per Sentence

The average number of words contained in a sentence, used as a measure of sentence complexity or readability.

Printed Lines

Text or images reproduced on paper or another surface using a printing process.

Obscuring Meaning

The act of making a message or information less clear and harder to understand, often intentionally.