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Consider a 5 -year lease for a $400,000 bottling machine, with a residual market value of $120,000 at the end of 5 years. If the
Consider a 5 -year lease for a $400,000 bottling machine, with a residual market value of $120,000 at the end of 5 years. If the risk-free interest rate is 5.4% APR with monthly compounding, compute the monthly lease payment in a perfect market for the following leases: a. A fair market value lease. b. A $1.00 out lease. c. A fixed price lease with an $71,000 final price. a. A fair market value lease. The present value of the lease payments is $. (Round to the nearest dollar.) A fair market value lease would be $. (Round to the nearest dollar.) b. A$1.00 out lease. A $1.00 out lease would be $ (Round to the nearest dollar.) c. A fixed price lease with an $71,000 final price. The present value of the lease payments is $. (Round to the nearest dollar.) A fixed price lease with an $71,000 final price would be $. . (Round to the nearest dollar.)
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