Given that the prevailing average market interest rate is 7


Sandra has just signed a 8-year lease for her new business. The full annual lease amount is due at the beginning of every year and such cash flows have been agreed to be 20437 dollars now and the subsequent payments to increase by 4% per year until maturity. Given that the prevailing average market interest rate is 7% per year compounded monthly, compute the present value of this financial asset.

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Financial Management: Given that the prevailing average market interest rate is 7
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