Capital Lease, Lessee, Lessor, Annuity Due, Guaranteed Residual Value. Denis Leasing Company recently leased machinery to Banks Building Associates. The five-year lease contract requires minimum rental payments of $ 20,000 at the beginning of each year. The lease is classified as a capital lease. The 9% implicit rate on the lease is known to Banks Building Associates. There is a $ 5,000 guaranteed residual value. Compute the present value of the minimum lease payments for Denis Leasing Company and Banks Building.