On 1 October 2022, Conston Ltd (which prepares accounts to 30 September) leases an asset to a lessee. The lease term is five years and the lessee is required to make lease payments of £27,500 each on 1 October 2022, 2023, 2024, 2025 and 2026. The fair value of the asset on 1 October 2022 is £112,500. Conston Ltd incurs initial direct costs of £430 and the rate of interest implicit in the lease is 12.5%.
At the end of the lease term, ownership of the asset will remain with Conston Ltd, by which time the asset is expected to have come to the end of its economic life and to have a scrap value of £5,000.

Required:
(a) Explain why this lease is a finance lease and not an operating lease.
(b) Calculate the net investment in the lease at commencement.
(c) Calculate the finance income which should be recognised in the financial statements of Conston Ltd for each of the five years of the lease term.