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A firm needs some machinery which it can lease from the manufacturer for a five-year period by making lease payments of $10,000 at the end
A firm needs some machinery which it can lease from the manufacturer for a five-year period by making lease payments of $10,000 at the end of each month. If the interest rate for the firm is 10% p.a., with monthly compounding, the present value of the lease payments is closest to:
$449,470.
$585,287.
$454,894.
$470,654.
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