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Coco company leases luxury equipment to its clients under sales - type leases. Coco s equipment has no residual value at the end of lease

Coco company leases luxury equipment to its clients under sales-type leases. Cocos equipment has no residual value at the end of lease and the leases do not contain purchase options. Coco wants an annual return of 12% interest on a seven-year lease of equipment with a fair value of $720,651,000. The first lease payment must be made immediately in the beginning of lease term. What is the total amount of interest revenue that Coco will earn over the life of the lease?

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