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Air Atlantic (AA) has been offered a 3-year old plan under a 12-year lease arrangment. The lease requires AA to pay $500,000 at the beginning

Air Atlantic (AA) has been offered a 3-year old plan under a 12-year lease arrangment. The lease requires AA to pay $500,000 at the beginning of each of the next 12 years. Determine the present value of the lease payments if the opportunity cost of funds is 14%.

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