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You have an apartment for rent. One potential tenant has promised to sign an annual lease for eight years, with each year's rent (paid at the end of the year) of $12,000. Rather than make annual payments, a second tenant has offered to pay you an upfront single cash payment for use of the apartment over the next eight years. If your discount rate is 5%, what is the minimum single cash payment that would make you sign the lease with the second tenant?

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Financial Management, Finance

Category:- Financial Management
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