Problem 3. Please note this is from the point of view of the lessor, the owner, not the renter. What is the minimum leas

[answerhappygod]

Problem 3.
Please note this is from the point of view of the
lessor, the owner, not the renter.
What is the minimum lease payment that would make purchasing a
precision manufacturing machine and writing a 4-year lease contract
on it? The price of the machine is $175,000, it is a
three-year asset for depreciation purposes, it has a residual value
of $7,000, it requires $500 maintenance per year, the cost of
capital is 10%, and the corporate tax rate is 40%.
Note: MACRS rates for Years 1 to 4 are 0.33, 0.45, 0.15,
and 0.07.