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Your company is just about to sign a deal to purchase a fleet of lorries for 1 million. The payment terms are 500,000 down payment

Your company is just about to sign a deal to purchase a fleet of lorries for 1 million. The payment terms are 500,000 down payment and 500,000 at the end of five years. No one present has a calculator or discount tables to hand. If the cost of capital for the company is 15 per cent, what is the present value cost of the purchase?

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