Lease payment in perfect market for the leases

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Reference no: EM131968698

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.)

Reference no: EM131968698

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