Ajax Capital Has Determined the Amount to Be Amortized on an Extruder

Multiple Choice

Ajax Capital has determined the amount to be amortized on an extruder is $540,000.If the required rate of return is 14%, what will be the total interest received over the life of the lease given that lease payments will be made at the beginning of each of the 7 years of the lease agreement? Assume a marginal tax rate of 40%.

A) $233,269
B) $748,786
C) $811,080
D) $110,467