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Suppose the risk-free interest rate is 5.1 % APR with monthly compounding. If a $ 2.5 million MRI machine can be leased for 6 years
Suppose the risk-free interest rate is 5.1 % APR with monthly compounding. If a $ 2.5 million MRI machine can be leased for 6 years for $ 30, 500 per month, what residual value must the lessor recover to break even in a perfect market with no risk? (Assume that the first payment is made immediately, so the payments occur at the beginning of each month.)
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