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EXAMPLE 2-A.5

The current lease rates quoted by the First Leasing Ltd contracts are: (i) Rs 18 Rs 1.000 month and (ii) Rs 12.5 Rs 1,000, month for speculatively. While the morph circlet, or contract in arrears. The 5 years contract are payable in advance. Assuming 10 percent marginal cost of present values of lease payments.

Solution

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