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6. Suppose a crane has a purchase price of $400 000 and will have a residual market value of $110 000 in five years. The

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6. Suppose a crane has a purchase price of $400 000 and will have a residual market value of $110 000 in five years. The risk-free interest rate is 3% APR with monthly compounding. Answer the following: a. What is the risk-free monthly lease rate for a five-year lease? (10p) b. What would be the monthly payment for a five-year $400,000 risk-free loan to purchase the crane? (5p)

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