Suppose the risk-free interest rate is 5.9% APR with monthly compounding. If a $1.7 million MRI machine can be leased for 5 years for $23,500 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.)

The present value of the residual value is $      

The residual value must be $     

The Manana Corporation had sales of $81 million this year. Its accounts receivable balance averaged $2 million. How long, on average, does it take the firm to collect on its sales? (Use 365 days for a year.)

The accounts receivable turnover is approximately         times per year. (Round to one decimal place.)

The average collection period is       days. (Round to the nearest integer.)