Ace Leasing acquires equipment and leases it to customers under long-term sales-type leases. Ace earns interest under these arrangements at a 6% annual rate. Ace leased a machine it purchased for $690,000 under an arrangement that specified annual payments beginning at the commencement of the lease for five years. The lessee had the option to purchase the machine at the end of the lease term for $200,000 when it was expected to have a residual value of $250,000. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Calculate the amount of the annual lease payments. (Round your answers to the nearest whole number.) Purchase Option Table or calculator function: n = PV of $1 i= Present Value Amount to be recovered (fair value) $ 690,000 Purchase option 140,992 Amount to be recovered through periodic lease payments $ 105,328 Lease Payment Table or calculator function: Amount of fair value recovered each lease payment n = i= Lease Payments