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Suppose an H1200 supercomputer has a cost of $250,000 and will have a residual market value of $50,000 in 4 years. The risk-free interest rate
Suppose an H1200 supercomputer has a cost of $250,000 and will have a residual market value of $50,000 in 4 years. The risk-free interest rate is 6.4% APR with monthly compounding. a. What is the risk-free monthly lease rate for a 4-year lease in a perfect market? b. What would be the monthly payment for a 4-year $250,000 risk-free loan to purchase the H1200 ? Note: Round the monthly interest rate to at least six decimal places. a. What is the risk-free monthly lease rate for a 4-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 4-year lease in a perfect market is $. (Round to the nearest dollar.) b. What would be the monthly payment for a 4-year $250,000 risk-free loan to purchase the H1200 ? The monthly payment for the risk-free loan is $. (Round to the nearest dollar.)
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