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Suppose the risk-free interest rate is 5.6 %5.6% APR with monthly compounding. If a $ 3.9$3.9 million MRI machine can be leased for 77 years
Suppose the risk-free interest rate is 5.6 %5.6% APR with monthly compounding. If a $ 3.9$3.9 million MRI machine can be leased for 77 years for $ 47 comma 500$47,500 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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