Please help solve for part C. The answer is correct however need assistance in knowing how to solve.

The following are some of the characteristics of an asset available for lease: 1 - x Requirements Characteristics Fair value of leased asset $ 100,000 Lease term a. Determine the amount of lease payment that the lessor would require to lease the asset. b. Compute the present value of minimum lease payments for the lessor. C. Compute the present value of minimum lease payments for the lessee. d. Evaluate whether the lessee should classify the lease as operating or finance. 5 years B. Annual Payment frequency Payment timing Guaranteed residual value End of year $ 20,000 10% Interest rate implicit in the lease (known to lessee) Lessee's incremental borrowing rate Print Done 8% Begin by calculating the present value of the residual value and the value to be recovered by the lessor from the annual lease payments. (Use a financial calculator for all present value computations. Enter your final answers as positive amounts rounded to the nearest dollar. Enter PV factor to four decimal places, X.XXX) Amount Fair value of asset $ 100,000 12,418 87,582 Present value of guaranteed residual value Value to be recovered by annual lease payments PV factor an annuity due of 5 yrs at 10% Annual payments required by lessor 3.7908 $ 23,104 Requirement b. Compute the present value of minimum lease payments for the lessor. (Use a financial calculator for all present value computations. Enter your final answer as a positive amount rounded to the nearest dollar.) Amount Annual payments $ 87,582 Present value of guaranteed residual value 12,418 PV MLP of Lessor $ 100,000 Requirement c. Compute the present value of minimum lease payments for the lessee. (Use a financial calculator for all present value computations. Enter your final answer as a positive amount rounded to the nearest dollar.) Amount Annual payments $ 92,247 Present value of guaranteed residual value 13,612 105,859 Total $ . Fair value of asset $ 100,000 PV of MLP for the lessee $ 100,000