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Roane Company has entered into two lease agreements. In each case the cash equivalent purchase price of...

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Accounting

Roane Company has entered into two lease agreements. In eachcase

the cash equivalent purchase price of the asset acquired isknown, the interest rate is 6%, and you wish to find the number ofrequired lease payments.

  

Lease A covers office equipment which could be purchased for$70,000. Roane Company has, however, chosen to lease the equipmentfor $11,000 per year, payable at start of each of the next ___years.

Lease A _____ years

Lease B applies to a machine which can be purchased for $66,000.Roane Company has chosen to lease the machine for $10,000 per year.Payments are due at the end of each year.

   Lease B _____ years

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