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A company enters into a 5 - year lease for a piece of machinery. The lease agreement specifies annual payments of $ 2 0 ,

A company enters into a 5-year lease for a piece of machinery. The lease agreement specifies annual payments of $20,000 due at the beginning of each year. The machinery has an estimated economic life of 7 years and no residual value. The company's incremental borrowing rate is 10%. The present value of the lease payments is approximately ____________.
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