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Suppose the risk-free interest rate is 5.4% APR with monthly compounding. If a $2.9 million MRI machine can be leased for 5 years for $38,000

Suppose the risk-free interest rate is

5.4%

APR with monthly compounding. If a

$2.9

million MRI machine can be leased for

years for

$38,000

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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