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The farm can lease a tractor for $ 13,000 per year (paid at the year-end) for 7 years instead of buying the tractor. The tractor
The farm can lease a tractor for $ 13,000 per year (paid at the year-end) for 7 years instead of buying the tractor. The tractor will be valueless after 7 years. If the interest rate your company can earn on its fund is 6%, what is the price you are paying (i.e the present value of the future payments?) (please advise in detail with formulation, thank you)
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