The present value of the lease payments is the risk-free


Suppose an H1200 supercomputer has a cost of 150,000 and will have a residual market value of $60,000 in 4 years. The? risk-free interest rate is5.8% APR with monthly compounding. a. What is the? risk-free monthly lease rate for a 4?-yearlease in a perfect? market? b. What would be the monthly payment for a 4?-year$ $150,000 ?risk-free loan to purchase the? H1200?

?Note: Round the monthly interest rate to at least six decimal places.

The present value of the lease payments is

?(Round to the nearest? dollar.)

The? risk-free monthly lease rate for a 4?-year lease in a perfect market is_____

? (Round to the nearest? dollar.)

b. What would be the monthly payment for a 4?-year $150,000 ?risk-free loan to purchase the? H1200?

The monthly payment for the? risk-free loan is

(Round to the nearest? dollar.)

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Financial Management: The present value of the lease payments is the risk-free
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