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Suppose an H1200 supercomputer has a cost of 450,000 and will have a residual market value of 67.000 in 5 years. The risk-free interest rate
Suppose an H1200 supercomputer has a cost of 450,000 and will have a residual market value of 67.000 in 5 years. The risk-free interest rate is 6.5% APR with monthly compounding.
a. What is the risk-free monthly lease rate for 5-year lease in a perfect market?
b. The risk-free monthly lease rate for a five-year lease in a perfect market?
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