Calculate Monthly Installment - Time Value of Money
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Your client, Wyeth Leasing Company, is preparing a contract to lease a machine to Souvenirs Corporation for a period of 25 years. Wyeth has an investment cost of $421,087 in the machine, which has a useful life of 25 years and no salvage value at the end of that time. Your client is interested in earning an 11% return on its investment and has agreed to accept 25 equal rental payments at the end of each of the next 25 years.
You are requested to provide Wyeth with the amount of each of the 25 rental payments that will yield an 11% return on investment. (Round the final answer to zero decimal places, e.g. 20,250. Hint: Use tables in text.)
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Solution Summary
The solution computes monthly installment for leasing machine in excel.
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