Crane Ltd$.,$ which uses ASPE, recently expanded its operations into an adjoining municipality, and on March $30,2023,$ it signed a $15-$

year lease with its Municipal Industrial Commission $($MIC$).$ The property has a total fair value of $$525,000$ on March $30,2023,$ with

one third of the amount attributable to the land and two thirds to the building. The land is expected to double in value over the next $15$

years, while the building will depreciate by $60\%.$ The lease includes a purchase option at the end of the lease that allows Crane to

receive title to the property for a payment of $$268,200,$ which is considered a BPO.

Crane is required to make rental payments of $$25,800$ annually, with the first payment due March $30,2023.$ The MIC's implicit

interest rate, known to all, is $9\%.$ The building's economic life is estimated at $25$ years, at which time it will have a small residual value

of $$40,000.$

$($a$)$

Using $(1)$ a financial calculator or $(2)$ Excel functions, calculate the PV of the lease obligation.