Alt-Ctrl-Delete Corporation enters into an agreement with Yates Rentals Co. on January 1, 2015 for the purpose of leasing a machine to be used in its manufacturing operations. The following data pertain to the agreement: (a)The term of the noncancelable lease is 3 years with no renewal option. Payments of $287,432 are due on January 1 of each year. The residual value is unguaranteed and greater than zero. (b)The fair value of the machine on January 1, 2015, is $800,000. The machine has a remaining economic life of 10 years, with no salvage value. The machine reverts to the lessor upon the termination of the lease. (c)Alt-Ctrl-Delete depreciates all machinery it owns on a straight-line basis. (d)Alt-Ctrl-Delete's incremental borrowing rate is 10% per year. Alt-Ctrl-Delete does not have knowledge of the 8% implicit rate used by Yates. W hat type of lease is this from Alt-Ctrl -Delete Corporations viewpoint?

Operating lease

Finance lease

Sales-type lease

Direct-financing lease