2. Lessee enters into a five-year lease of office space on January 1, and concludes that the agreement is an operating lease. The agreement provides the following: Lease term Five years, with the first payment due at lease commencement and the remainder annually at the lease anniversary date thereafter Annual payments, beginning at Commencement $29,000 lease commencement and annually Year 2 $28,000 thereafter Year 3 $27,000 Year 4 -- $26,000 Year 5 -- $25,000 Discomit rate 4.0% a. Determine the present value of lease payments