Question
Assume that capital markets are perfect. The price of a truck is $90,000, its residual value in four years will be $15,000, and there is
residual value in four years will be $15,000, and there is no risk that the lessee will default on
the lease. The risk-free interest rate is 6% APR with monthly compounding. Calculate
the monthly lease payments for a four-year lease of the truck.
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Get StartedRecommended Textbook for
Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
6th Edition
0137852584, 9780137852581
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