Bond Corporation has an asset with a fair market value of $400,000 that it wants to lease. Bond wants to recover its net investment in the leased asset and earn a 5% return. The asset will revert back to Bond at the end of a 5-year lease term. If Bond charges rent annually at the beginning of the year, what should amount should the annual rent be (rounded to whole dollars)?
Question 8 options:
$20,000
$87,990
$92,390
$80,000