4. Santa Corporation Santa Corporation manufactures Christmas decorations and supplies throughout the world. The company owns property, plants, and equipment and also enters into operating leases for certain facilities. Assume that Santa's incremental borrowing rate is 8%. The company's tax rate is 40%. Listed below are selected financial data for Santa and a portion of the company's operating lease footnote. 2012 2010 Property, Plant, & liquipment (nel S 882,465 S 717,450 $ 656214 Total Assets 1.756,85 1.405,4541 254896 Common Shareholders' Equity 567.993 662.628 587.951 Sales Cost of Goods Sold Depreciation Expense Interest Expense Net Income 52.922,915 52.415.630 2,016811 230 73 6754 106,663 248,44% 217.000 Santa Corp Operating Lease Disclosure amounts in thousands) Operating Lease Commitment at the end of 2012 Year Reported Lease Commitments 2011 $145.239 2014 $2$2.800 2015 5278 127 2010 $229,210 20171 S285 452 Beyond 20171 1. Using the information provided by Santa Corporation, estimate the average life of the operating leases. 2. Using the information provided by Santa Corporation, calculate the present value of the operating leases. 4. Santa Corporation Santa Corporation manufactures Christmas decorations and supplies throughout the world. The company owns property, plants, and equipment and also enters into operating leases for certain facilities. Assume that Santa's incremental borrowing rate is 8%. The company's tax rate is 40%. Listed below are selected financial data for Santa and a portion of the company's operating lease footnote. 2012 2010 Property, Plant, & liquipment (nel S 882,465 S 717,450 $ 656214 Total Assets 1.756,85 1.405,4541 254896 Common Shareholders' Equity 567.993 662.628 587.951 Sales Cost of Goods Sold Depreciation Expense Interest Expense Net Income 52.922,915 52.415.630 2,016811 230 73 6754 106,663 248,44% 217.000 Santa Corp Operating Lease Disclosure amounts in thousands) Operating Lease Commitment at the end of 2012 Year Reported Lease Commitments 2011 $145.239 2014 $2$2.800 2015 5278 127 2010 $229,210 20171 S285 452 Beyond 20171 1. Using the information provided by Santa Corporation, estimate the average life of the operating leases. 2. Using the information provided by Santa Corporation, calculate the present value of the operating leases