4. On 1/1/08 R-U Ready leased Machine C for a period of 10 years. Fixed annual payments of $3,200 are required, which include executory costs of $200. The first annual payment is on 1/1/08, the inception of the lease. The remaining payments will be made on 12/31 of each year. A residual value of $3600 is anticipated by the lessor; $2,000 is also guaranteed by the R-U Ready, the lessee. R-U Readys incremental borrowing rate is 12%. The fair market value of Machine C is $20,500. Machine C will go back to the lessor at the end of the lease. The estimated life of Machine C is 15 years, with a residual value at the end of 15 years of $1,000. 5. Assume the same information as No. 4 above, but assume the payments are all on 1/1 with the first payment on 1/1/08. Assume the same information as No. 4 above, but assume the payments are all on 1/1 with the first payment on 1/1/08.