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Assume that another of MEs capital leases requires the company to make ten payments of 1,200 on March 31st each year beginning on March 31,
Assume that another of MEs capital leases requires the company to make ten payments of 1,200 on March 31st each year beginning on March 31, 2015. What is the present value of these lease payments if the appropriate discount (i.e., interest) rate is 7%? Hint: Drawing a timeline that lays out the cash flows will make this analysis easier.
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