Consider a 66?-year lease for a $500,000 bottling? machine, with a residual market value of $100,000 at the end of 66 years. If the? risk-free interest rate is 5.9 % APR with monthly? compounding, compute the monthly lease payment in a perfect market for the following? leases:
a. A fair market value lease.
b. A $1.00 out lease.
c. A fixed price lease with an $59,000 final price.
a. A fair market value lease.
The present value of the lease payments is ______________? (Round to the nearest? dollar.)
A fair market value lease would be ______________?(Round to the nearest? dollar.)
b. A $1.00 out lease. A $1.00 out lease would be ________________ ?(Round to the nearest? dollar.)
c. A fixed price lease with an $59,000 final price.
The present value of the lease payments is _________________?(Round to the nearest? dollar.)
A fixed price lease with an $59,000 final price would be _____________? (Round to the nearest? dollar.)