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On January 1, year 1, blake corp. leases equipment from general equipment. The lease is a 5-year lease with annual payments of $10,000 beginning at

On January 1, year 1, blake corp. leases equipment from general equipment. The lease is a 5-year lease with annual payments of $10,000 beginning at the inception of the lease. The lease also has a bargain purchase option for $3,000 at the end of year 5. The lease is a capital lease. The interest rate in the lease is 10%. What is the present value of the minimum lease payments?

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