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Northern Equipment leases cooling towers to Warmup Corporation. The equipment is not specialized and is...

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Northern Equipment leases cooling towers to Warmup Corporation. The equipment is not specialized and is delivered on January 1, 2019 The value of the equipment is $180,000. The cost of the equipment to Northern is $170,000 and the expected life of the testing equipment is 8 years the end of the useful le s pected that the equipment will have a residual value of 520 000 although the lesse garantees only $15,000 Northern Incurs initial direct costs of 520 000 which they expense. The lease term for the equipment is 8 years with the first payment of $27 000 due upon delivery and seven subsequentantul payments of $27.000 beginning on December 31 2019 and ending on December 31, 2025. The lease is properly dassified as a sales-type lease What is Northern's implicate for the lease? (Round any intermediate calculations to the nearest and round your final percentage two decimal places XXX%) OA 9.56% OB. 5615 OC. 7.715 OD 7.22%

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