Suppose that the bulldozer can be leased with a fixed price lease that allows the lessee to buy the asset at the end of the lease for $12,000.The lease payments will be closest to:
A)$2,114
B)$1,825
C)$1,882
D)$2,324
E)$1,945

Question

Quizplus · Accepted Answer

This is a lease valuation problem typically solved using the present value of annuity formula. The lease payments calculation involves determining the annuity payments that, when discounted at the appropriate interest rate over the lease term, plus the present value of the purchase option price, equals the asset's current value. Without the specific interest rate, lease term, or asset value, we can't provide the exact calculation steps. However, the correct answer is chosen based on the information provided in the question and the options given.

Suppose That the Bulldozer Can Be Leased with a Fixed