The hardaway corporation plans to lease a 810000 asset to


The Hardaway Corporation plans to lease a $810,000 asset to the O’Neil Corporation. The lease will be for 11 years. Use Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. If the Hardaway Corporation desires a return of 13 percent on its investment, how much should the lease payments be? (Do not round intermediate calculations and round your answer to 2 decimal places.) Lease payment $ b. If the Hardaway Corporation is able to take a 10 percent deduction from the purchase price of $810,000 and will pass the benefits along to the O’Neil Corporation in the form of lower lease payments (related to the Hardaway Corporation in the form of lower initial net cost), how much should the revised lease payments be? The Hardaway Corporation desires a return of 13 percent on the 11-year lease. (Do not round intermediate calculations and round your answer to 2 decimal places.) Revised lease payment $ HintsReferenceseBook & Resources WorksheetDifficulty: Challenge

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Financial Management: The hardaway corporation plans to lease a 810000 asset to
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