QUESTION 1: A construction company agreed to lease payments of $452.56 on construction equipment to be made at the end of every month for 9.5 years. Financing is at 11% compounded monthly. (a) What is the value of the original lease contract? (b) If, due to delays, the first 9 payments were deferred, how much money would be needed after 10 payments to bring the lease payments up to date? (c) How much money would be required to pay off the lease after 10 payments?
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QUESTION 1: A construction company agreed to lease payments of $452.56 on construction equipment to be made at the end of every month for 9.5 years. Financing is at 11% compounded monthly. (a) What is the value of the original lease contract? (b) If, due to delays, the first 9 payments were deferred, how much money would be needed after 10 payments to bring the lease payments up to date? (c) How much money would be required to pay off the lease after 10 payments? (d) If the lease were paid off after 10 payments, what would the total interest be? (e) How much of the total interest would be due to deferring the first 9 payments?
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- 1.A construction company agreed to lease payments of $536.13 on construction equipment to be made at the end of every month for 5.25 years. Financing is at 9% compounded monthly. (a) What is the value of the original lease contract? (b) If, due to delays, the first 6 payments were deferred, how much money would be needed after 7 payments to bring the lease payments up to date? (c) How much money would be required to pay off the lease after 7 payments? (d) If the lease were paid off after 7 payments, what would the total interest be? (e) How much of the total interest would be due to deferring the first 6 payments? 2.What is the discounted value of payments of $92.00 made at the end of every three months for 8.5 years if interest is 12% compounded quarterly?A construction company agreed to lease payments of S427.14 on construction equipment to be made at the end of every month for 8.75 years. Financing is at 9% compounded monthly. (a) What is the value of the original lease contract? (b) If, due to delays, the first 9 payments were deferred, how much money would be needed after 10 payments to bring the lease payments up to date? (c) How much money would be required to pay off the lease after 10 payments? (d) If the lease were paid off after 10 payments, what would the total interest be? (e) How much of the total interest would be due to deferring the first 9 payments? (a) The value of the original lease contract is S (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The company would have to pay $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) The company would need $. (Round the final answer…A construction company agreed to lease payments of $514.43 on construction equipment to be made at the end of every month for 8.75 years. Financing is at 11% compounded monthly. (a) What is the value of the original lease contract? (b) If, due to delays, the first 9 payments were deferred, how much money would be needed after 10 payments to bring the lease payments up to date? (c) How much money would be required to pay off the lease after 10 payments? (d) If the lease were paid off after 10 payments, what would the total interest be? (e) How much of the total interest would be due to deferring the first 9 payments?
- A construction company agreed to lease payments of $622.77 on construction equipment to be made at the end of every three months for 9.75 years. Financing is at 7% compounded quarterly. (a) What is the value of the original lease contract? (b) If, due to delays, the first 6 payments were deferred, how much money would be needed after 7 payments to bring the lease payments up to date? (c) How much money would be required to pay off the lease after 7 payments? (d) If the lease were paid off after 7 payments, what would the total interest be? (e) How much of the total interest would be due to deferring the first 6 payments? (a) The value of the original lease contract is S| (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) The company would have to pay $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (c) The company would need $ (Round the final…Yankee Construction agreed to lease payments of $762.79 on construction equipment to be made at the end of each month for six years. Financing is at 15% compounded monthly. a) What is the value of the original lease contract? b) If, due to delays, the first eight payments were deferred, how much money would be needed after nine months to bring the lease payments up to date? c) How much money would be required to pay off the lease after nine months?Yankee Construction agreed to lease payments of $762.79 on construction equipment to be made at the end of each month for six years. Financing is at 15% compounded monthly. a) What is the value of the original lease contract? b) If, due to delays, the first eight payments were deferred, how much money would be needed after nine months to bring the lease payments up to date? c) How much money would be required to pay off the lease after nine months? d) If the lease were paid off after nine months, what would the total interest be? e) How much of the total interest would be due to deferring the first eight payments?
- A finance lease agreement calls for quarterly lease payments of $7,728 over a 10-year lease term, with the first payment on July 1, the beginning of the lease. The annual interest rate is 12%. Both the present value of the lease payments and the cost of the asset to the lessor are $184,000. Required: a. Prepare a partial amortization table up to the October 1 payment. b. What would be the amount of interest expense (revenue) the lessee (lessor) would record in conjunction with the second quarterly payment on October 1? Complete this question by entering your answers in the tabs below. Required A Required B Prepare a partial amortization table up to the October 1 payment. Note: Enter all amounts as positive values. Round your answers to the nearest whole dollar. Date Lease Payment Effective Interest Decrease in balance Outstanding balance July 1 July 1 October 1QUESTION 1 Assume a company (lessee) signs a lease for a forklift with the following predicates: Fair value of the forklift is $16,000 Lease term is 3 years Monthly payments of $500/month paid in advance $50 of the monthly payment is related to the maintenance Interest rate a bank would charge this company for a $16,000 loan over 3 years is 4% of the Useful Life of the forklift is 5 years Required: At the end of the lease term, the company can purchase the forklift for $1,000, which is the estimated fair value at the end of the leaseA finance lease agreement calls for quarterly lease payments of $5,376 over a 10-year lease term, with the first payment on July 1, the beginning of the lease. The annual interest rate is 8%. Both the present value of the lease payments and the cost of the asset to the lessor are $150,000. Required: a. Prepare a partial amortization table up to the October 1 payment. b. What would be the amount of interest expense (revenue) the lessee (lessor) would record in conjunction with the second quarterly payment on October 1? Complete this question by entering your answers in the tabs below Required ARequired B What would be the amount of interest expense (revenue) the lessee (lessor) would record in conjunction with the second quarterly payment on October 1? Interest expense (Lessee) Interest revenue (Lessor) K Required A
- ok nces Bravo Manufacturing Company is negotiating with a customer for the lease of a large machine manufactured by Bravo. The machine has a cash price of $840,000. Bravo wants to be reimbursed for financing the machine at a 7% annual interest rate. Required: 1. Determine the required lease payment if the lease agreement calls for 15 equal annual payments beginning immediately. 2. Determine the required lease payment if the first of 15 annual payments will be made one year from the date of the agreement. 3. Determine the required lease payment if the first of 15 annual payments will be made immediately and Bravo will be able to sell the machine to another customer for $54,000 at the end of the 15-year lease. Note: For all requirements, Use tables, Excel, or a financial calculator. (FV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) Complete this question by entering your answers in the tabs below. Required I Required 2 Required 3 Determine the required lease payment…A finance lease agreement calls for quarterly lease payments of $5,133 over a 15-year lease term, with the first payment on July 1, the beginning of the lease. The annual interest rate is 8%. Both the present value of the lease payments and the cost of the asset to the lessor are $182,000. Required: a. Prepare a partial amortization table up to the October 1 payment. b. What would be the amount of interest expense (revenue) the lessee (lessor) would record in conjunction with the second quarterly payment on October 1? Complete this question by entering your answers in the tabs below. Required A Required B Prepare a partial amortization table up to the October 1 payment. Note: Enter all amounts as positive values. Round your answers to the nearest whole dollar. Date July 1 July 1 October 1 Lease Payment Effective Interest Decrease in Outstanding balance balance Required A Required B >York Construction agreed to lease payments of $762.79 on construction equipment to be made at the end of each month for six years. Financing is at 15% p.a. compounded monthly. a. If the lease were paid off after ten months, what would the total interest be? b. How much of the total interest would be due to deferring the first nine payments?
