Quest Inc. is negotiating an agreement to lease equipment to a lessee for 8 years. The equipment has a useful life of 10 years. The fair value of the equipment is \(\$ 40,000\) and the lessor expects a rate of return of \(8 \%\) on the lease contract. The lessee guarantees a residual value of \(\$ 10,000\) at the end of the 8 -year lease term. If the first annual payment is required at the end of the first year following the commencement of the lease, what fixed lease payment should Quest Inc. charge in order to earn its expected rate of return on the contract?