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Air Atlantic has leased out a 3-year old jet under a 12-year arrangement. The lease requires the lessee to pay Air Atlantic annual payments of

Air Atlantic has leased out a 3-year old jet under a 12-year arrangement. The lease requires the lessee to pay Air Atlantic annual payments of $500,000 beginning next year. If Air Atlantic can invest at 14 percent annually, what is the lease arrangement worth to it?

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