Rabbit Inc. has an asset with an FMV of $450,000 that it wishes to lease....
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Rabbit Inc. has an asset with an FMV of $450,000 that it wishes to lease. Rabbit's wants to recover its net investment in the leased asset and earn 8%. The asset will revert to Rabbit's at the end of a 5-year lease term and the residual value of the asset is expected to be $20,000 at the end of the lease.
If Rabbit wants to collect rent semi-annually from the beginning of the lease, what should be the amount of the lease payments ?
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