Question: 7) Given the following information: The lease is non-cancellable and its term is 4 years. The lease calls for four equal payments at the

7) Given the following information: The lease is non-cancellable and its term is 4 years. The lease calls for four equal payments at the beginning of each year. The lessee's incremental borrowing rate is 6% and the lessor's implicit rate of return is 5%. The fair market value of the leased asset is $227,500. The lease contains a guaranteed residual value of $10,000 for the asset at the end of the lease. The lease does not contain any renewal option. The leased asset cost the lessor $170,000. a) Calculate the amount to be recovered through lease payments. b) Calculate the lease payment.

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