


Answer:  
Present Value of Annual Payment = Fair Value () Present Residual value = $ 184,000 () [ $ 8,000 x PVF ( 12%, 6 Years ) = $ 184,000 () [ $ 8,000 x 0.50663 ] = $ 184,000 () $ 4,053.04 = $ 179,946.96 

The amount of the annual rental
payment = Present Value of Annual Payment / PV Annuity Due (12%, 6 Years ) = $ 179,946.96 / 4.60478 
$ 39,078 
Get Answers For Free
Most questions answered within 1 hours.