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Suppose therisk-free interest rate is 5.3% APR with monthly compounding. If a $3.2 million MRI machine can be leased for 4 years for $59,500 permonth,

Suppose therisk-free interest rate is

5.3% APR with monthly compounding. If a

$3.2 million MRI machine can be leased for

4years for

$59,500 permonth, what residual value must the lessor recover to break even in a perfect market with norisk? (Assume that the first payment is madeimmediately, so the payments occur at the beginning of eachmonth.

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