What residual value must the lessor recover to break even


Suppose the risk-free interest rate is 5.6 % 5.6% APR with monthly compounding. If a $ 3.9 $3.9 million MRI machine can be leased for 77 years for $ 47 comma 500$ 47,500 per month, what residual value must the lessor recover to break even in a perfect market with no? risk? Assume that the first payment is made immediately, so the payments occur at the beginning of each month.

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Financial Management: What residual value must the lessor recover to break even
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