Answer:
James Industries
The amount of the annual lease payments is:
= $207,878.86.
Explanation:
a) Data and Calculations:
Cost of equipment = $830,000
Normal sales price = $830,000
Residual value after 5 years = $200,000
Interest rate = 8%
Lease period = 5 years
From an online financial calculator:
Loan Amount  830000
Loan Term  5  years
Interest Rate  8
Results:
Payment Every Year   $207,878.86
Total of 5 Payments   $1,039,394.29
Total Interest   $209,394.29
Lease Payment Schedule:
Period    PV                      PMT                      Interest           FV
1           $830,000.00     $-207,878.86   $66,400.00    $-688,521.14
2            $688,521.14     $-207,878.86    $55,081.69  $-535,723.98
3          $535,723.98     $-207,878.86    $42,857.92  $-370,703.04
4          $370,703.04     $-207,878.86    $29,656.24  $-192,480.42
5          $192,480.42     $-207,878.86     $15,398.43  $0.00