Calculating Lease payments and returns:
Wings Inc. is a commuter airliner that serves Boston area. Wings plans to lease a new plan through Nantucket Capital Inc. The lease term is 15 years, and no residual value is expected at its end.
a. What monthly lease payment must Nantucket charge to earn at a 12% return on its investment if the plane Wings wants costs $1.5 million?
b. What would Nantucket's return be if it added to accept annual payments of $200,000?