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Consider a 5-year lease for a $400,000 bottling machine, with a residual market value of $60,000 at the end of 5 years. If the risk-free
Consider a 5-year lease for a $400,000 bottling machine, with a residual market value of $60,000 at the end of 5 years. If the risk-free interest rate is 5.2% 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 $34,000 final price
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