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Lily Corporation is considering leasing a machine to a client for five years. The machine sells for $150,000 cash. The incremental borrowing rate is 8%.

Lily Corporation is considering leasing a machine to a client for five years. The machine sells for $150,000 cash. The incremental borrowing rate is 8%. The implicit rate is unknown. Payments are quarterly and start at the commencement of the lease. What is the quarterly lease payment?

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