Please help with the 2 steps, and explain. Confused on the calculations.

Problem 21 - 1 Cheyenne Leasing Company agrees to lease machinery to Avayai Corporation on January 1 , 2017 . The following information relates to the lease agreement . 1 . The term of the lease is ] years with no renewal option , and the machinery has an estimated economic life of a years . 2 . The cost of the machinery is $ 541 , 000 , and the fair value of the asset on January 1 , 2017 , 15 $ 760 , 000 . 3 . At the end of the lease term , the asset reverts to the lessor and has a guaranteed residual value of $ 30 , 000 . Avayai depreciates all of its equipment on a straight- line basis . 4 . The lease agreement requires equal annual rental payments , beginning on January 1 , 2017 . 5 . The collectibility of the lease payments is reasonably predictable , and there are no important uncertainties surrounding the amount of costs yet to be incurred by the lessor . 5 . Cheyenne desires a 10%'6 rate of return on its investments . Avayai's incremental borrowing rate is 1 1%/6 , and the lessor's implicit rate is unknown . [ Assume the accounting period ends on December 31 . ] Click here to view factor tables Calculate the amount of the annual rental payment required . ( Round present value factor calculations to 5 decimal places , e .g . 1 . 25 124 and the final answer to O decimal places e .g . 58, 971 . ) Annual rental payment* SHOW LIST OF ACCOUNTS LINK TO TEXT\\\\ \\LINK TO TEXT* Compute the present value of the minimum lease payments . ( Round present value factor calculations to 5 decimal places , e .g. 1 . 25 124 and the final answer to O decimal places & .J. 58, 971 .) Present value of minimum lease payments* SHOW LIST OF ACCOUNTS LINK TO TEXT\\\\ LINK TO TEXT