Your client, Keith Wildhorse Leasing Company, is preparing a contract to lease a machine to Souvenirs Corporation for a period of 28 years. Wildhorse has an investment cost of $430,000 in the machine, which has a useful life of 28 years and no salvage value at the end of that time. Your client is interested in earning an 8% return on its investment and has agreed to accept 28 equal rental payments at the end of each of the next 28 years.
You are requested to provide Wildhorse with the amount of each of the 28 rental payments that will yield an 8% return on investment Amount of each rental payments.