0/1 pts Incorrect Question 12 On January 1, 2017, Wood Corporation leases a piece of equipment from Prior Corporation and properly accounts for the equipment as a finance lease. Under the agreement, Wood will make 10 annual payments of $500,000 each January 1st. At the end of 10 years, Wood has the option of buying the equipment for $200,000, when the estimated fair value will be $400,000. If Wood's incremental borrowing rate is 7%, what is the present value of the minimum lease payments? 3,859,285.98 3,366,402.87 None of the above 3,613,460.63