American Eagle Outfitters includes the following in its fiscal 2013 annual report (in thousands): Please demonstrate process using a Ba II Plus Texas Instrument Financial Calculator, meaning inputs in the calculator
			Fiscal Years:				Future Minimum Lease Payments
			2014				$273,827
			2015				261,828
			2016				233,810
			2017				206,934
			2018				177,229
			Thereafter				601,934
			Total				$1,755,562
Required:
a.	Calculate the present value of operating lease payments using a discount rate of 6%.
b.	Assume that the leased equipment has a useful life of 9 years, no salvage value, and straight-line depreciation is used. Estimate the effect on net operating profit before tax of capitalizing these leases. Assume that rental expense in 2013 is the same as 2014 lease payments.
c.	How would ROE and the other financial ratios from the ROE decomposition be affected if the company capitalized these operating leases?