Rabbit Inc. has an asset with a fair market value of $450,000 that it wants...
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Rabbit Inc. has an asset with a fair market value of $450,000 that it wants to lease. Rabbits wants to recover its net investment in the leased asset and earn an 8%. The asset will revert back to Rabbits at the end of a 5-year lease term and it is expected that the residual value of the asset will be $20,000 at the end of the lease. If Rabbit wants to charge rent semi-annually starting at the beginning of the lease, what amount should the lease payments be (rounded to whole dollars)?
$101,200
$104,367
$62,096
$51,745
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