Question: Taylor, Inc. is purchasing a new security system that will last for four years. You can purchase the system for an up-front cost of $170,000,

Taylor, Inc. is purchasing a new security system that will last for four years. You can purchase the system for an up-front cost of $170,000, or you can lease the system from the manufacturer for $4500 paid at the end of each month. The lease price is offered for a 48-month lease with no early termination. Your firm can borrow at an interest rate of 6% APR with monthly compounding. What is the present value of the monthly payments?

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