An Asset with a Market Value of $100,000 Is Leased

question 33

Multiple Choice

An asset with a market value of $100,000 is leased on January 1,2014.Five annual lease payments are due each January 1 beginning January 1,2014.The lessee guarantees the $40,000 residual value of the asset as of the end of the lease term on December 31,2018.The lessor's implicit interest rate is 8%. What is the annual lease payment?

• A) $18,227
• B) $16,877
• C) $23,191
• D) $25,046

---

Definitions:

Customer Database

A collection of information about individuals who purchase goods and services from a business, including their purchase history, contact details, and preferences.

End-use Factors

Considerations regarding how and for what purpose a product will be used by the consumer, influencing design and marketing strategies.

Psychographic Factors

Characteristics of consumers that include lifestyle, values, attitudes, and psychological influences that affect buying behaviors.

Demographic Factors

Attributes of a population such as age, race, gender, income, and education that influence consumer behavior and business strategies.