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Suppose a Mining Forklift has a cost of $250,000 and will have a residual market value of $50,000 in 6 years. The risk-free interest rate
Suppose a Mining Forklift has a cost of $250,000 and will have a residual market value of $50,000 in 6 years. The risk-free interest rate is 5.3% APR with monthly compounding. a. What is the risk-free monthly lease rate for a 6-year lease in a perfect market? b. What would be the monthly payment for a 6-year $250,000 risk-free loan to purchase the Forklift? Note: Round the monthly interest rate to at least six decimal places. a. What is the risk-free monthly lease rate for a 6-year lease in a perfect market? The present value of the lease payments is $. (Round to the nearest dollar.) The risk-free monthly lease rate for a 6-year lease in a perfect market is $. (Round to the nearest dollar.) b. What would be the monthly payment for a 6-year $250,000 risk-free loan to purchase the Forklift? The monthly payment for the risk-free loan is $. (Round to the nearest dollar.)
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